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IRA Contributions

Deadline for Correcting Excess 2022 IRA Contributions: October 16, 2023

Understanding IRA Contribution Limits for 2022 

As we plan for our retirement, Individual Retirement Accounts (IRAs) can play a crucial role in securing our financial future. However, it is important to understand the IRA contribution limits set by the Internal Revenue Service (IRS). . By familiarizing ourselves with these limits, we can make informed decisions to maximize our retirement savings. 

The IRS has set the contribution limits for IRAs in 2022 at $6,000 for individuals under the age of 50 and $7,000 for individuals who are 50 years of age or older. These limits apply to both Traditional IRAs and Roth IRAs. It is essential to note that these limits are per individual, not per account. Therefore, if you have multiple IRAs, the total contributions across all accounts must not exceed the set limits. 

Consequences of Exceeding the IRA Contribution Limits 

While it is important to maximize your IRA contributions, exceeding the contribution limits can have serious consequences. If you contribute more than the allowed amount, the excess amount is considered an “excess contribution.”  

Additionally, the tax benefits associated with IRAs may be impacted if you exceed the contribution limits. For example, if you contribute more to a Traditional IRA than allowed, the excess amount will not be tax-deductible. Similarly, if you contribute more to a Roth IRA than allowed, you may face additional taxes and penalties when withdrawing the excess contributions. 

The Penalties for Excess IRA Contributions 

Understanding the penalties associated with excess IRA contributions is essential for effectively managing your retirement savings. The IRS imposes a 6% penalty tax on the excess amount for each year it remains in your IRA. This penalty is separate from any taxes owed on the excess contribution. 

Additionally, if the excess amount generates any earnings while it remains in your IRA, those earnings will also be subject to taxes when you withdraw them. Therefore, it is crucial to address excess contributions promptly to mitigate the potential penalties and taxes. 

How to Identify and Correct an Excess IRA Contribution 

When it comes to making contributions to your Crypto IRA, it is important to be aware of key dates and deadlines.  For the year 2022, the deadline for making IRA contributions was April 18, 2023. However, there is an additional deadline that many investors may not be aware of, the deadline for removing excess IRA contributions – for 2022 this date is October 16.  

The Deadline for Removing Excess 2022 IRA Contributions   

The October 16 deadline is an often overlooked but crucial date for Crypto IRA investors. It provides an opportunity to make corrections to your 2022 contributions, ensuring that you are maximizing your tax advantages and avoiding potential penalties. By taking advantage of this deadline, you can make any necessary adjustments to your contributions. 

How to Correct Your Crypto IRA Contributions 

Correcting your Crypto IRA contributions is a relatively straightforward process. First, you will need to review your contribution records for the year 2022. If you discover that you over contributed, you can take steps to correct the issue before the October 16 deadline. This may involve contacting your IRA custodian or administrator and providing them with the necessary information to make the corrections. 

Over contributing to your IRA can result in penalties and complications down the line. By utilizing the October deadline to remove excess contributions, you can avoid potential penalties and ensure compliance with IRS regulations. This can help maintain a smooth financial trajectory toward your retirement objectives.  

Benefits of Correcting Your Contributions Before the Deadline 

Correcting your contributions before the October 16 deadline offers several benefits. First and foremost, it allows you to ensure that your Crypto IRA is in compliance with tax regulations and that you are taking full advantage of the tax advantages offered by a Crypto IRA. Additionally, by making any necessary adjustments to your contributions, you can align your investment strategy with your financial goals. 

Common Mistakes to Avoid When Correcting Your IRA Contributions 

While correcting your  IRA contributions is important, it is equally important to avoid common mistakes that can lead to further complications. One common mistake is waiting until the last minute to review your contribution records. By conducting regular reviews throughout the year, you can identify and address any issues in a timely manner. Another mistake is failing to consult with a financial advisor or tax professional. These experts can provide guidance and ensure that you are making the most informed decisions regarding your contributions. 

Consulting Services for IRA Contributions 

For individuals who prefer a more personalized approach, consulting services are available to assist with  IRA contributions. These services typically involve working directly with experienced professionals who can provide guidance and support throughout the contribution correction process. By leveraging their expertise, you can ensure that your IRA contributions are accurate and in compliance with tax regulations. 

Next Steps 

As the deadline for correcting your 2022 IRA contributions approaches, it is important to know the options for correcting an IRA contribution and take the necessary steps to review and make any necessary adjustments. By understanding the importance of contributions to a Crypto IRA, being aware of key dates, and knowing how to correct your contributions, you can maximize the benefits of your retirement account. Remember to avoid common mistakes and utilize available resources to ensure that you are making informed decisions. Don’t miss out on the opportunity to secure your financial future – take action before the October 16 deadline and make the most of your Crypto IRA contributions. 

To start maximizing your Crypto IRA contributions open an account on today or schedule a call with a Bitcoin IRA Specialist. 


Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. The information provided in this article is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you.   

US Treasury's New Digital Asset and Brokers proposed Regulations

Understanding the Implications of the US Treasury’s New Digital Asset and Brokers Proposed Regulations

The US Treasury has recently introduced new proposed regulations regarding digital assets and brokers. These proposed regulations have far-reaching implications for individuals and businesses in the digital asset space. It is crucial to stay informed and proactive in order to navigate this rapidly evolving landscape. 

Overview of the current tax regime for digital assets 

Under the current tax regime, digital assets are treated as property by the IRS. This means that they are subject to capital gains tax when sold or exchanged. It is important for digital asset holders to understand their tax obligations and ensure compliance with the IRS guidelines. 

What are digital assets and why are they important? 

Digital assets, also known as cryptocurrencies or virtual currencies, are a form of digital or virtual money that relies on cryptography for security. They have gained significant popularity and importance in recent years due to their decentralized nature and potential for financial freedom. Digital assets offer a range of benefits, including faster and cheaper transactions, increased privacy, and the ability to bypass traditional financial intermediaries. 

Understanding the implications of the proposed regulations for digital asset holders 

The new proposed regulations introduced by the US Treasury impose reporting requirements on digital asset holders. These requirements include providing information about transactions and the value of digital assets held. Failure to comply with these regulations can result in penalties and legal consequences. It is crucial for digital asset holders to understand and fulfill their obligations under the new rules. 

What is a broker and how do the regulations impact them? 

A broker is an individual or entity that facilitates the buying and selling of digital assets on behalf of others. The proposed regulations expand the definition of a broker to include entities such as decentralized exchanges and peer-to-peer platforms. This means that these entities will be subject to reporting requirements and other obligations under the new regulations. It is important for brokers to understand and comply with these requirements to avoid legal issues. 

Steps to ensure compliance with the new proposed regulations

To ensure compliance with the new proposed regulations, digital asset holders and brokers should take certain steps. Firstly, they should educate themselves about the regulations and seek professional advice if needed. Secondly, they should implement robust record-keeping systems to accurately track transactions and digital asset holdings. Thirdly, they should establish strong internal controls to ensure compliance with reporting requirements. Lastly, they should regularly review and update their compliance procedures to adapt to any changes in the regulatory landscape. 

Key considerations for individuals and businesses in the digital asset space 

Individuals and businesses in the digital asset space need to consider several key factors in light of the new proposed regulations. Firstly, they should assess their current digital asset holdings and transactions to determine their reporting obligations. Secondly, they should evaluate the impact of the regulations on their business models and operations, in case these are approved. Thirdly, they should consider the potential tax implications of the new regulations and seek professional advice if necessary. Lastly, they should stay informed about any future developments or changes in the regulatory landscape that may affect their compliance obligations. 

Notice that proposed regulations are open for public comment and feedback until October 30, 2023. Access to more details about the proposed regulation document and public hearing dates here.   

Resources and tools for navigating the new proposed regulations. 

Navigating the new proposed regulations can be complex, but there are resources and tools available to help individuals and businesses in the digital asset space. The IRS provides guidance and educational materials on their website to assist with tax compliance. Additionally, there are industry-specific organizations and associations that offer resources, webinars, and forums for discussing regulatory issues. It is important to leverage these resources and tools to stay informed and ensure compliance with these regulations. 

The importance of staying informed and proactive in the evolving digital asset landscape 

In conclusion, the US Treasury’s new digital asset and broker proposed regulations have significant implications for individuals and businesses in the digital asset space. It is essential to stay informed about these regulations and take proactive steps to ensure compliance. Experts in the digital asset space believe that new regulations will bring much-needed clarity and legitimacy to the industry.   

Keep in mind that after the formal publication of these proposed regulations on August 29, 2023 there is a 60-day comment period for the public to provide feedback on the proposal. This list of proposed regulations will not be decided until November 2023.  

To open an account and start investing in digital assets, visit BitcoinIRA today! Stay ahead of the game and secure your financial future in this exciting and rapidly evolving landscape. 


Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. The information provided in this article is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you.   


Bitcoin and Cryptocurrency

5 Misconceptions About Bitcoin and Cryptocurrency

Bitcoin and cryptocurrency have been hot topics of discussion in recent years. Many people are intrigued by the concept of digital currency and the potential for high returns on investment. However, there are also a lot of misconceptions surrounding Bitcoin and cryptocurrency that can deter people from exploring this new financial frontier. In this article, we will break down the top five misconceptions about Bitcoin and cryptocurrency and provide you with the truth behind these myths. 

Common Misconceptions About Bitcoin and Cryptocurrency 

Misconception 1: Is Bitcoin only used for illegal activities? 

One of the biggest misconceptions about Bitcoin is that it is solely used for illegal activities. It is important to note that the vast majority of Bitcoin transactions are completely legal. In fact, Bitcoin is not only increasingly being accepted as a form of payment by legitimate businesses around the world but it is also regulated by state governments. It offers a fast and secure way to transfer funds without the need for intermediaries, making it a convenient option for both individuals and businesses. 

Misconception 2: Is Cryptocurrency a bubble waiting to burst? 

Another common misconception about cryptocurrency is that it is a bubble waiting to burst. It is important to remember that volatility is not synonymous with a bubble. The value of cryptocurrencies can fluctuate in a short period of time, but this is due to factors such as market demand, investor sentiment, and regulatory developments. Many experts believe that cryptocurrencies have the potential to revolutionize the financial industry and that their value will continue to grow over time. 

Misconception 3: Is Cryptocurrency too volatile to invest in? 

Linked to the previous misconception, some people believe that cryptocurrency is too volatile to be a viable investment option, however it is true that volatility can present opportunities for investors. By carefully analyzing market trends and employing sound investment strategies, it is possible to profit from the volatility of cryptocurrencies. Additionally, as the crypto market continues to mature, it is expected that volatility will gradually decrease, making it a more stable investment option in the long run. 

Misconception 4: Is Cryptocurrency only for tech-savvy individuals? 

Many people believe that cryptocurrency is only for tech-savvy individuals who possess a deep understanding of blockchain technology. While it is true that a basic understanding of blockchain technology can be helpful, it is not a prerequisite for investing in cryptocurrency. There are now user-friendly platforms and exchanges that make it easy for anyone to buy, sell, and store cryptocurrencies. Furthermore, there are numerous educational resources available online that can help beginners navigate the world of cryptocurrency and make informed investment decisions. 

Misconception 5: Is Cryptocurrency not regulated? 

Lastly, some people have concerns about the regulatory environment and security surrounding cryptocurrency. While the regulatory landscape for cryptocurrency is evolving, there are already measures in place to protect investors and prevent fraudulent activities. Many countries have implemented regulations to ensure that cryptocurrency exchanges operate in a transparent and secure manner. Additionally, advancements in blockchain technology have made cryptocurrencies inherently secure, as each transaction is recorded on a decentralized ledger and cannot be easily tampered with. 

The Truth About Bitcoin and Cryptocurrency 

Now that we have debunked the top five misconceptions about Bitcoin and cryptocurrency, let’s delve into the truth behind these myths. Bitcoin and cryptocurrency offer numerous advantages over traditional forms of currency and investment. They provide a decentralized and transparent financial system that is not controlled by any central authority. This means that transactions can be conducted quickly and securely, without the need for intermediaries such as banks. Furthermore, cryptocurrencies have the potential to provide financial inclusion to the unbanked population, as they can be accessed with just a smartphone and an internet connection. 

Why People Should Consider Investing in Cryptocurrency 

Given the potential benefits of cryptocurrency, it is worth considering it as an investment option. Cryptocurrencies have the potential for high returns on investment, especially if you carefully research and select promising projects. Additionally, investing in cryptocurrency allows you to diversify your investment portfolio and hedge against traditional financial markets. As the crypto market continues to grow and mature, it is expected that more institutional investors will enter the space, further driving up the value of cryptocurrencies. 

The Future of Cryptocurrency 

The future of cryptocurrency is promising. As more people recognize the benefits of digital currency and the potential for high returns on investment, the demand for cryptocurrencies is expected to increase. Additionally, advancements in blockchain technology are likely to improve scalability, security, and usability, making cryptocurrencies more accessible to the general public. Furthermore, the integration of cryptocurrencies into traditional financial systems and the emergence of central bank digital currencies indicate a growing acceptance and adoption of digital currencies on a global scale. 

In conclusion, Bitcoin and cryptocurrency are not just a passing fad or a tool for illegal activities. They represent a new era of finance that offers numerous advantages over traditional forms of currency and investment. By debunking the top five misconceptions surrounding Bitcoin and cryptocurrency, we hope to encourage more people to explore this exciting and potentially lucrative market. If you are interested in investing in cryptocurrency, consider opening an account at BitcoinIRA, a reputable platform that provides a secure and user-friendly experience. Don’t miss out on the opportunities that cryptocurrency has to offer. 


Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. The information provided in this article is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you.

The Federal Reserve

Understanding The Federal Reserve & Bitcoin

Money is an integral part of how we interact with the world each day, from buying groceries to depositing our paychecks. Money is sent and received, but who creates it and how it evolved to its current dollar form and value today rarely gets a second thought. 

The Federal Reserve is the central bank of the Unites States of America and is “arguably the most influential economic institution in the world.” While you may be familiar with its role in creating monetary policy, you may be unfamiliar with its history. 

In this article, we’ll explore why the Federal Reserve exists, what its monetary policy entails, and how Bitcoin proposes to modernize its 100-year-old financial structure. 

Why The Fed was founded 

The Federal Reserve was created in 1913 in an attempt to quell American banking instability at a time when widespread bank runs and failures were rampant. The Bank Panic of 1907 exemplified the need for mandatory bank reserve minimums to ensure customer withdrawal demands could be met.      

The Federal Reserve Act was signed into law by President Wilson and The Fed was established as a “banker’s bank” to regulate as well as oversee the monetary system. As such, it would determine whether new money should be “injected” into the country to prevent economic downturn. 

How The Fed creates money 

In order to fully understand how money is injected into the economy, we’ll begin with how the Fed “creates” it. In fact, the Federal Reserve doesn’t actually create physical money. It controls the money supply while the U.S. Department of Treasury is responsible for physical money creation. However, in today’s digital age, very little paper money represents the total supply in circulation. 

There are several ways the Fed creates money beyond physical money. Imagine if you could create money by simply typing numbers into a computer. Sounds magical, right? That is essentially what the Federal Reserve can do. When the economy needs a boost, the Fed can initiate open market operations (OMO), buy Treasury bonds, use repurchase agreements, or create short-term loans to credit to the banks’ reserves. 

Bailouts and the “money-printing” policy 

Although the Fed’s raison d’être was “to serve as a lender of last resort,” critics argue that the Federal Reserve enables risky behavior by banks. The U.S. has witnessed numerous bailouts since the Federal Reserve was founded, most recently during the 2008 financial crisis and the COVID-19 pandemic. 

In 2008, “firms and investors started to experience losses on home mortgage-related financial assets after a period of reduced inflation. The Fed bailed out “large financial institutions, such as Bear Stearns and American International Group, Inc.” after they took “unreasonable risks” not unsimilar to those responsible for the Fed’s very creation.  

Twelve years later, COVID-19 lockdowns led to a stagnant economy. The Fed Board reduced the legally required banking reserve ratio of approximately 10% to zero from March 2020 until March 2022 and took other measures to stimulate economic activity.  When business as usual resurfaced, inflation spiked leading to 11 Fed interest rate hikes in 2023. 

The gradual replacement of physical money has encouraged the Fed to become “much more technologically creative since its founding. Practices such as fractional reserve banking, the credit market funnel, and loose fiscal spending increase the probability of borrowing beyond one’s means and have grown in usage across the globe.  

While the Fed was formed to prevent economic downturn, the recent banking crisis and accompanying bailouts mirror the same events that led to the Fed’s creation. After 100+ years, could a digital answer to the digital age be overdue? 

Bitcoin’s solution to money printing 

Contrary to popular belief, Bitcoin was not created as a response to the 2008 financial crisis. Though its Genesis block was embedded with a secret message about the UK’s second round of bank bailouts, the foundation for its revolutionary “decentralized electronic cash solution” was in the works for decades.  

The release of its first block and white paper is neither less astutely timed nor impactful. The world’s first cryptocurrency shed light on the fundamental problems of the current global financial system and presented a “new solution to a relatively new problem.”  

In short, Bitcoin’s pseudonymous creator Satoshi Nakamoto invented a fungible, permissionless, digital currency. Its decentralized nature offers global transfers without the need of a banking intermediary at a faster rate than historically possible. It negates the possible corruption of a central authority while incorporating an immutable ledger called blockchain. And finally, its limited supply of 21 million Bitcoin addresses the inflationary concerns that unlimited money-printing policy poses. 

In its short lifespan, the price of Bitcoin rose from $0 to around $26,000 to date. Meanwhile the national debt reached $32 trillion this year and the debt ceiling was raised. While Bitcoin was designed to maintain value rather than as an investing vehicle, its potential for substantial growth continues to gain popularity with savvy investors.  

Ready to start investing in BTC? 

In the world of investments, every opportunity comes with its share of risks. However, Bitcoin, renowned for its dynamic price movements, can be strategically leveraged as a hedge against inflation. The good news is that you can harness this power within a tax-advantaged individual retirement account (IRA) tailored for Bitcoin with what is known as a Crypto IRA. However, it is important to choose a reputable Crypto IRA provider that offers robust security measures. 

What sets us apart at BitcoinIRA is the comprehensive asset protection that we provide. Our cutting-edge solution includes state-of-the-art military-grade offline cold storage wallets1, powered by BitGo. This means your valuable investments remain shielded from any potential threats.  

Elevate your investment strategy by diversifying your retirement portfolio with Bitcoin and over 60 other cryptocurrencies we offer. Your journey starts today. Sign Up and take that exciting step towards your financial future.


1.Security, storage, wallet providers, and insurance may vary based on asset chosen and custody solution available.

Regulatory Aspects of Crypto IRA

Guiding Through the Regulatory Aspects of Crypto IRA Compliance

As the world of digital currencies continues to expand, investors are increasingly looking for innovative ways to diversify their portfolios. One such avenue is investing in Bitcoin IRAs, which offer a unique opportunity to incorporate cryptocurrencies into retirement savings. In this guide, we will explore the regulatory aspects of crypto IRA compliance and provide you with a comprehensive understanding of Bitcoin IRAs. 

Understanding the Regulatory Aspects of Crypto IRA 

Before diving into the world of Bitcoin IRAs, it is essential to understand the regulatory landscape surrounding these investment vehicles. The Internal Revenue Service (IRS) treats cryptocurrencies as property for tax purposes. This means that any gains or losses from cryptocurrency investment are subject to taxation. Additionally, the Securities and Exchange Commission (SEC) has been actively monitoring the cryptocurrency market, particularly Initial Coin Offerings (ICOs), to ensure compliance with securities laws. 

Benefits of Using a Bitcoin IRA to Invest in Crypto 

Using a Bitcoin IRA to invest in crypto offers several benefits for individuals looking to diversify their retirement savings. Firstly, Bitcoin IRAs provide exposure to the world’s leading cryptocurrency, allowing investors to capitalize on the potential growth of the digital asset. Secondly, Bitcoin IRAs offer a level of decentralization and security that traditional retirement accounts may lack. Finally, Bitcoin IRAs offer the same tax benefits as regular IRAs.    

Navigating the Tax Implications of Bitcoin IRAs 

One of the critical aspects of Bitcoin IRAs is understanding the tax implications associated with them. When it comes to withdrawals from a Bitcoin IRA, the tax treatment depends on whether it is a traditional or Roth IRA. With traditional Bitcoin IRAs, withdrawals taken at retirement age are typically subject to ordinary income tax rates. On the other hand, Roth Bitcoin IRAs offer tax-free withdrawals taken at retirement age are typically subject to ordinary income tax rates. as long as certain conditions are met. It is essential to consult with a tax professional to choose the right type of IRA for you, to ensure compliance with tax regulations, and to maximize the tax benefits of your Bitcoin IRA.

Reporting Crypto on Taxes: Best Practices for Compliance 

Reporting cryptocurrency investments on taxes can be a complex process, but adhering to best practices can help ensure compliance. As long as you keep the money in your Bitcoin IRA, you should not need to report any gains or losses on your investments. That’s because IRAs are tax-sheltered. What this means is that no taxes are incurred while the money is in the account. Once you begin to take distributions from your IRA at retirement age, you will need to take possible taxes into consideration. In addition, your IRA custodian annually sends you the forms you need to file your taxes. However, you should also consult with a tax professional who is knowledgeable about cryptocurrency tax reporting to ensure that you are meeting all reporting requirements.   

Understanding the Difference Between Traditional and Roth Bitcoin IRAs 

When considering a Bitcoin IRA, it is crucial to understand the difference between traditional and Roth IRAs. Traditional Bitcoin IRAs allow for tax-deferred growth, meaning that you will typically pay taxes on withdrawals taken at retirement age at ordinary income tax rates. On the other hand, Roth Bitcoin IRAs offer tax-free growth and tax-free withdrawals, as long as certain conditions are met. The choice between traditional and Roth Bitcoin IRAs depends on your individual financial goals and tax situation. Consult with a financial advisor to determine which option is best suited for your retirement needs. 

Common Misconceptions About Bitcoin IRAs and Regulatory Compliance 

There are several common misconceptions about Bitcoin IRAs and regulatory compliance that are important to address. Firstly, some individuals believe that Bitcoin IRAs are not subject to taxation. As mentioned earlier, Bitcoin IRAs are subject to the same taxation rules as regular IRAs.  Another misconception is that Bitcoin IRAs are not regulated. While the cryptocurrency market is still evolving, there are regulatory frameworks in place to ensure compliance with tax and securities laws.  

Choosing the right Bitcoin IRA provider that adheres to these regulations is essential to ensure the security and compliance of your investment. At Bitcoin IRA we offer a user-friendly platform for investing in cryptocurrencies within an IRA. We provide a seamless experience for opening an account, funding it, and securely storing your Bitcoin. 

Embracing the Future of Retirement Investing with Bitcoin IRAs 

As cryptocurrencies continue to gain traction in the financial world, Bitcoin IRAs offer a unique opportunity to incorporate digital assets into retirement savings. By understanding the regulatory aspects of crypto IRA compliance, investors can navigate the complexities of investing in Bitcoin IRAs with confidence. By following best practices for tax reporting and selecting a reputable Bitcoin IRA provider, individuals can embrace the future of retirement investing and potentially reap the benefits of this innovative asset class. 

To get started on your Bitcoin IRA journey, create an account at 

Crypto coins sit beside a legislative house with a bitcoin symbol on top.

Secure 2.0 Act Lets You Boost Your Retirement Savings

The Securing a Strong Retirement Act, also known as the Secure 2.0 Act, was finalized in 2022 across two pieces of legislation from the House of Representatives (H.R. 2954) and U.S. Senate (S.1770). Several of the bill’s provisions come into effect both this year, next year, and beyond, which means understanding its advantages is important for retirement investors. 

The primary goals of the Secure 2.0 Act are to encourage people to save more for retirement, improve retirement rules, and reduce the cost to employers of setting up retirement plans. Read on to understand the changes and improvements below, and how they can boost your retirement savings.  

Changes to Required Minimum Distribution (RMD) Lengthen Savings Time 

The Secure 2.0 Act aims to significantly improve retirement savings choices, and expands upon the original “1.0” version from 2019. The legislation contains a variety of changes and provisions related to retirement accounts, including several of interest to cryptocurrency investors and holders of digital assets within these accounts. Below are the changes at a glance: 

  • RMD age increased from 72 (2022) to 73 (2023) 
  • Age will increase again to 75 in 2033 
  • The penalty for not taking an RMD decreased from 50% to 25%  

Firstly, the bill increases the RMD age from the prior 72 years to 73 years old for 2023. In 2033, the RMD age will further increase to 75. This brings added flexibility and gives investors more time to save, though it’s important to note that those already underway with their RMDs from age 72 in 2022 will need to continue their original distribution schedule. 

Penalties have also been reduced for failing to take an RMD, now comprising 25% of the RMD value instead of 50%. Additionally, if failure to take an RMD is resolved expeditiously, the 25% penalty may decrease further to only 10%.  

Exciting Increases in Retirement Contribution Limits 

Beyond RMD changes, the Secure 2.0 Act also boosts retirement contribution limits, meaning individuals can save more for retirement faster, should they choose. This is potentially and especially powerful to cryptocurrency retirement investors, considering the performance track record of the asset class.  

For 2023, the IRA contribution limit has increased to $6,500 for individuals under age 50, and $7,500 for individuals over age 50. For 401(k) plans, the contribution limit will increase to $22,500, up from $20,500. Also beginning in 2023, contributions to SEP and SIMPLE IRAs are now Roth eligible.  

Beginning in 2024, the IRA catch-up contribution limit will change from $1,000 for individuals over age 50 to a limit indexed to inflation each year based on cost-of-living adjustments (COLA). Considering the inflationary behavior of the U.S. dollar in recent years (crypto enthusiasts tend to know this well), this is a welcome change. 

Finally, beginning in 2025, the 401(k) catch-up contribution limit will increase for individuals between the ages of 60 and 63 to at least $10,000, and will also adjust for inflation starting in 2026. Similar to how Social Security has its own COLA that determine its increase each year, catch-up contributions described above now operate similarly, helping perpetuate the idea that it’s never too late to save for retirement. Combined with the potential of cryptocurrency in your retirement account, the increases may be powerful incentives for retirement savings late-starters. 

Amendments to Qualified Charitable Distributions 

Another provision of the Secure 2.0 Act concerns qualified charitable distributions. Starting in 2023, individuals over the age of 70 ½ may elect a one-time gift of up to $50,000 to either a charitable remainder unitrust, charitable remainder annuity trust, or charitable gift annuity. In 2024, like with the aforementioned catch-up contribution limits, the qualified charitable distribution limit will be indexed for inflation. 

New Rollover Choices and Emergency Flexibility 

The Secure 2.0 Act legislation also contains provisions granting 529 plan assets eligibility to be rolled into a Roth IRA for the beneficiary after 15 years (additional eligibility and contribution limits apply). This grants new flexibility in moving assets and funds between after-tax retirement vehicles, including mutual funds, ETFs, and other similar investments where investment value grows on a tax-deferred basis (see our handy guide for more on reporting retirement taxes). 

Lastly, several sections of the bill expand access to retirement funds ahead of retirement age under certain circumstances. For example, section 115 allows participants to access up to $1,000 (once yearly) for emergencies, including family costs or personal reasons, without paying 10% early withdrawal penalties. Elsewhere, section 127 permits employees to open a Roth emergency savings account containing up to $2,500 per participant, beginning in 2024. Domestic abuse survivors are now allowed to withdraw significant amounts of funds from retirement accounts early without penalty, as are victims of federally declared natural disasters. 

Overall Implications of the Secure 2.0 Act 

In total, the Secure 2.0 Act loosens and expands contribution limits and reduces friction and pain points from the retirement experience over time. It also attaches the yearly increase of certain limits to an inflation-adjusted growth schedule (a benefit well understood by cryptocurrency enthusiasts), and creates provisions for victims of violence, emergencies, and disasters. 

For cryptocurrency retirement investors, these improvements largely mean more dollars individuals can contribute toward one of the top-performing asset classes, with few rivals in the past decade. In crypto, and especially during and shortly after crypto winter, every dollar counts toward the opportunity to realize a dream retirement on, or even significantly ahead, of schedule.