Bitcoin could be on the verge of a new bull run. According to Tuur Demeester of Adamant Research, in his book How to set a Bitcoin Boomwe may be in the early stages of a new multi-year bull market that could propel bitcoin prices into six figures.
“During this accumulation phase, we expect bitcoin to trade at $22,000 to $42,000, until a new multi-year bull market pushes it well north of $120,000,” Demeester noted.
Imagine receiving a large share of bitcoin before this program even starts—a share that can be completely tax-free thanks to an old retirement account you’ve probably completely forgotten about!
Step 1: Buy hardware bags
The first step is to find the tools you need to ensure your bitcoin is secure. A hardware wallet allows you to store your bitcoin keys offline, giving you complete control over your funds.
Start by purchasing a few hardware wallets, such as those offered by Trezor or Ledger. Unchained currently supports a variety of devices, including the Ledger Nano X, Trezor Model T, and Coldcard Mk4. Check out the full list of hardware bags Basics not included.
For complete safety, it is recommended that you buy directly from the manufacturer, but buying from a trusted third-party retailer, such as Best Buy, is also acceptable. This is especially true in the context of multisig which removes any single key as a single point of failure.
Make sure you get at least two wallets—you’ll need both to set up your Non-Consolidated IRA wallet.
Step 2: Create an account on Unchained.com
Next, go to Unchained and create an account. The process is simple: provide your name, email, phone number, and create a strong password. Unchained takes your privacy seriously.
Once your account is created, select the type of account you need—in this case we’re creating an IRA account. If you prefer personal assistance, consider choosing Unchained’s Concierge Onboarding, where a bitcoin custodial expert will guide you every step of the way.
Step 3: Create your Non-Contributed IRA account—with no setup or first-year account fees!
Now is the time to set up your IRA account. With a Non-Consolidated IRA, you can save bitcoin in a tax-advantaged way while maintaining full control of your keys. There is no third-party risk because you hold the keys—ensuring that no one else can access your bitcoin.
Setting up an account is straightforward—there are no setup fees, account fees don’t kick in until the second year, and you can see the trading fees on our pricing page. Unchained’s IRA offers both Traditional and Roth options, allowing you to choose the one that best fits your retirement strategy.
Step 4: Follow the self-help guide for vault setup
After setting up your account, it’s time to set up your multisig vault—one of the most secure ways to protect bitcoin. Multisig requires more than one key to authorize transactions, which reduces the risk associated with host and exchange hacks, bad business practices, or individual errors.
You can set up this secure multisig configuration in less than an hour using Unchained Self-Service Onboarding. Just follow the guide on diy.unchained.com to get started—if you’re using two hardware bags to build your basement, you’ll choose the Lead storage model.
Step 5: Use your existing 401k/IRA
Next, you’ll need to fund your new IRA, and there are several ways to do it: an IRA-to-IRA rollover, a 401(k)-to-IRA rollover, or an annual contribution. The most common way is to rollover money from an existing 401(k) or IRA to your Noncontributed IRA.
While this process may sound tedious—especially if your 401(k) administrator needs to give you a physical check—it’s straightforward. Once you receive your money, Unchained will convert it to bitcoin with our trading desk and deposit it into your IRA.
If you already hold bitcoin in another IRA, you can make a fund transfer to move your bitcoin directly to Unchained without converting the money first. If you want to learn more about how to fund your IRA, we have a full Knowledge Base article for that.
Step 6: Enjoy the benefits of tax-earned bitcoin
Congratulations—your retirement savings are now secured in bitcoin! Unchained offers low annual fees. Starting in the second year, you will pay an annual fee of $250 for your IRA account.
Holding bitcoin in a tax-advantaged account combines bitcoin’s inflation resistance with the benefits of an IRA. Most importantly, you always own your bitcoin—not an exchange or a third party. If the bull run is approaching as many suspect, a Non-Contributed IRA can put you in a position to watch your retirement savings grow.
This article is provided for educational purposes only, and should not be relied upon as tax or investment advice. The disclaimer makes no representations regarding the tax consequences or investment suitability of any structure described herein, and all such questions should be directed to your own tax or financial advisor. Statements about markets or other financial information, are obtained from sources we believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information.
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