Basically, I want to diversify my avoid getting nuked by taxes strategy. I like the P2P exchanges and use them exclusively now when I want to get a good or a service with Bitcoin.
Anyone using them? Pros/Cons?
0 sats \ 0 replies \ @021da48107 8 Jun 2023
If you are all in on bitcoin and have the means then you should put bitcoin into an IRA IMO. I haven't put any bitcoin into any IRAs yet so I'm not sure how unchained or any alternatives are.
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0 sats \ 5 replies \ @FrickFrickFrick 8 Jun 2023
I love unchained but no bitcoin backed IRA makes any sense to me. You are locking up Bitcoin until you are like 50 or 60+ years old. I would rather keep my Bitcoin liquid and bank on the fact that it will continue to gain roughly every 4 years.
Keep in mind when you liquidate your Bitcoin to live off it, you only have to liquidate what you intend to spend. You don't need to liquidate $60,000 of Bitcoin to fund your lifestyle for the year and take a massive singular capital gains hit. You can just sell 200 here and there for groceries to manage your gains.
It just don't make sense for me to lock up Bitcoin that long for the potential to spend it tax free. Potential because there is no guarantee you will even live to 60 in the first place.
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0 sats \ 4 replies \ @Jonathan_Adly OP 8 Jun 2023
From what I understand (feel feel to correct me) is you can withdraw it anytime and pay taxes on earnings.
If you want to avoid the taxes, that’s when the age matter.
So, if I need it and sell. I don’t lose anything. If I didn’t need and got to the right age, then all those earnings are tax-free.
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0 sats \ 2 replies \ @031ef7d322 8 Jun 2023
You pay taxes on gains no matter what. You pay a lot of extra taxes if you cash out early.
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0 sats \ 1 reply \ @Jonathan_Adly OP 8 Jun 2023
The whole point of ROTH IRA is that you don’t pay taxes on gains…
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10 sats \ 0 replies \ @021da48107 8 Jun 2023
It's more complicated then that. The money you put into the Roth IRA you can withdraw any time, because you already paid taxes on it. The gains/earnings work differently, more info here. Basically if you don't have a qualified withdrawal you have to pay taxes on the earnings, and a 10% penalty.
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0 sats \ 0 replies \ @FrickFrickFrick 8 Jun 2023
If that is the case I think it would be worth it. Maybe Bitcoin IRA's are different in that way? I was under the impression you cannot withdraw once its locked into an IRA though so it may be something to clarify with Unchained. They have good customer support and client on boarding so I bet they will be able to get you an answer pretty quick.
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