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Tools / Bitcoin IRA

Roth vs Traditional Bitcoin IRA

Compare after-tax outcomes between a Roth and Traditional Bitcoin IRA under your specific assumptions about contribution size, expected growth, and tax bracket changes. The model uses 2026 federal brackets and assumes the Traditional's upfront deduction is reinvested in a taxable account at long-term capital gains rates. See our Roth vs Traditional explainer for the full methodology.

Filing status
Annual contribution$7,000
Same dollars compared across both structures
Growth multiple8.0x
How many times the contribution grows by retirement
Current taxable income$150,000
Marginal rate today: 24%
Expected retirement income$100,000
Marginal rate in retirement: 22%
Ending balance: $56,000
Result

Roth is the better fit by $644

Under these assumptions, paying tax now (Roth) and growing the contribution tax-free leaves more in your hands at retirement than taking the deduction now (Traditional) and paying tax at distribution, even accounting for reinvesting the Traditional deduction in a taxable account.

Traditional Bitcoin IRA

Contribution (gross)
$7,000
Cost today (after deduction)
$5,320
Ending balance
$56,000
Tax at distribution
$12,320
Net after-tax (incl. reinvested savings)
$55,356

Roth Bitcoin IRA

Contribution (gross)
$7,000
Cost today (no deduction)
$7,000
Ending balance
$56,000
Tax at distribution
$0
Net after-tax
$56,000

The Roth advantage scales with the asset's appreciation. Higher expected growth favors the Roth structure more strongly; lower expected growth or a lower retirement bracket favors the Traditional structure.

The Traditional column assumes the upfront tax savings are reinvested in a taxable account growing at the same multiple, with the gain taxed at a 15% long-term capital gains rate at retirement. Holders who would not actually reinvest the savings will see a worse outcome from the Traditional structure than the calculator shows.

Federal-only model. State taxes and Medicare premium impacts are not included. Not tax advice; consult a qualified tax professional before making structure decisions.

Related reading

  • Roth Bitcoin IRA vs Traditional Bitcoin IRA →
  • What is a Bitcoin IRA? →
  • Bitcoin IRA Fee Calculator →
  • Best Bitcoin IRA Providers 2026 →