I opened a crypto regular IRA in tax year 2021 and funded it with untaxed funds from my job's 401k. Since then, the value of the crypto assets in the IRA have declined but I believe this is a cyclical downturn so I'm holding on. At age 61, if I take a distribution in tax year 2022 would I incur the tax liability in 2022 or when I ultimately sell the crypto assets for cash when I reach age 65?
Additionally, when I have to pay the taxes, would they be based on the higher value of the crypto assets when I funded the IRA in 2021, the lower current value at distribution in 2022, or the value in 2025 when I plan to sell the crypto assets?
