Expert shares 6 essential tips for opening a Bitcoin IRA in 2025

Americans’ “magic number” to retire comfortably in 2025 is $1.26 million. However, among Americans with retirement savings, only 25% say they have just one year or less of their current annual income put aside for it.

The 2025 Planning & Progress Study by Northwestern Mutual puts forward these trends around retirement.

52% of Gen X, many of whom are approaching retirement years, have 3 times their current annual income or less saved. 54% believe they won't be financially prepared for retirement.

Amid these trends, Bitcoin IRAs are emerging as a popular option.

Related: What is Crypto? Cryptocurrency explained

Bitcoin IRA

An individual retirement account (IRA) is a long-term personal savings plan that provides tax advantages to help you save for retirement.

Traditional Roth Payroll Deduction Simplified Employee Pension (SEP) Savings Incentive Match Plan for Employees (SIMPLE) Salary Reduction Simplified Employee Pension (SARSEP)

A Bitcoin IRA is no different except that you can invest in Bitcoin using retirement savings.Signage for the Internal Revenue Service (IRS) is seen outside IRS headquarters in Washington, DC, on April 15, 2025.

CEO reveals 6 Bitcoin IRA tips

Joseph Kelly, CEO and co-founder of the Bitcoin financial services firm Unchained, told TheStreet Roundtable in an email, "Bitcoin IRAs bring together the advantages of bitcoin and the tax benefits of retirement accounts."

Kelly also shared six practical tips for navigating Bitcoin IRAs.

One should pick an IRA type based on personal tax preference, he advised. Contribution to a traditional IRA is tax-deferred for now but taxed upon withdrawals later. Contribution to a Roth IRA, on the other hand, is taxed now, but withdrawals remain tax-free.

Kelly recommended those Bitcoin IRA providers who let clients hold crypto wallet keys. Prefer keys with secure 2-of-3 collaborative custody models to avoid single-custodian points of failure or asset freezes.

Contribute to the IRA either through cash contributions, rollovers from employer plans, or IRA-to-IRA. If you hold Bitcoin in another IRA, transfer it on-chain to the new IRA instead of liquidating and then investing in it again, he advised.

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Kelly also suggested keeping fewer accounts for better fund oversight, and going for Bitcoin IRA providers with reasonable trading and conversion fees.

Opt for a provider with a clear inheritance protocol and name beneficiaries on day one so that your loved ones can safely access funds, he added.

Story Continues

Bitcoin investment in an IRA is a financial decision that deserves an expert's attention. Kelly said,

"Working with a trusted Bitcoin financial expert can simplify the process, and help guide you through funding, custody, and compliance to stay secure and on track for retirement."

Disclaimer: The content above is intended for informational purposes only and should not be taken as financial advice. Do your own research before investing.

FAQ

What is an IRA?

An IRA is a long-term personal savings plan that provides tax advantages to help you save for retirement.

How many types of IRA are there?

These are the following types of IRA:

Traditional Roth Payroll Deduction SEP SIMPLE SARSEP

What is Bitcoin IRA?

A Bitcoin IRA is an emerging type of IRA that lets you invest in Bitcoin using retirement savings.

What is special about Bitcoin IRA?

A Bitcoin IRA pairs Bitcoin’s hedge against inflation with the IRA's tax benefits.

This story was originally reported by TheStreet on Sep 3, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

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