RE: How to Setup a Self-Directed Traditional or Roth IRA For Cryptotoken Investments
This is very useful and I like the clear instructions. I always liked the idea of using Self-directed IRAs and they are perfect for cryptoinvestments. There are some contribution and income limits for IRAs/Roth IRAs here, but generally speaking you can invest up to $5,500 or $6,500 (if over 50) in a tax-deferred account. Roth IRAs are also good for estate planning since you don't have required minimum distributions (RMD) as with Traditional IRAs. The only downside with Roth IRAs is you use after-tax contributions. Hence one of the factors that may influence someone to use a Roth or Traditional IRA is what a person believes his/her tax rate will be now compared to the future. It's advantageous to use a Roth if someone is in a lower tax bracket now compared to the future.
....or someone can just use stealth transactions.
Disclaimer: I am also not a tax advisor. This article is not intended to be construed as advice. Talk with a tax professional to find out if this is the right course of action for you.
I find the tax-free advantages of the Roth IRA to greatly outweigh the tax deferment that the Traditional IRA offers. This is simply due to the fact that I find taxation to be nothing more than legalized theft. If the US Congress wants to create laws that allow me to not pay taxes, I will gladly follow those rules and reap the rewards.
I agree with your sentiments about taxes in general. Roth IRAs have good additional benefits, esp if tax rates are lower now than retirement, but you use after-tax dollars for Roth contributions (traditional IRAs let you deduct contributions) so to compare a Roth to a Traditional you can compare tax rates now vs. the future.