Are there any restrictions or limitations when using the simple IRA rules for cryptocurrencies in 2016?

1 answers

• Feb 17, 2022 · 3 years ago
  When it comes to using the simple IRA rules for cryptocurrencies in 2016, there are a few important restrictions and limitations to be aware of. Firstly, cryptocurrencies are considered property by the IRS, which means that any gains made from cryptocurrency investments are subject to capital gains tax. Additionally, contributions to a simple IRA must be made in cash, so you cannot directly contribute cryptocurrencies to your simple IRA. However, you can sell your cryptocurrencies and then contribute the cash proceeds to your simple IRA. It's also worth noting that the maximum contribution limit for a simple IRA in 2016 is $12,500, or $15,500 if you're 50 years old or older. To ensure compliance with IRS regulations, it's recommended to consult with a tax professional or financial advisor.
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