Are there any tax implications or considerations when including cryptocurrencies in my retirement plan alongside a 401k and Roth IRA?

1 answers

• Dec 15, 2021 · 3 years ago
  When you add cryptocurrencies to your retirement plan alongside a 401k and Roth IRA, it's essential to be aware of the tax implications. The IRS treats cryptocurrencies as property, so any gains or losses from cryptocurrency investments are subject to capital gains tax. Short-term gains, from holding cryptocurrencies for less than a year, are taxed at your regular income tax rate. Long-term gains, from holding cryptocurrencies for more than a year, are taxed at a lower capital gains tax rate. However, it's important to note that tax laws and regulations regarding cryptocurrencies are still evolving, so it's advisable to consult with a tax professional for the most up-to-date information.
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