What are the tax implications of cashing out a T Rowe Price 401k and investing in cryptocurrency?

3 answers

• Nov 28, 2021 · 3 years ago
  Cashing out a T Rowe Price 401k and investing in cryptocurrency can have tax implications. When you cash out your 401k, you may be subject to income tax on the amount withdrawn. Additionally, if you are under the age of 59.5, you may also be subject to an early withdrawal penalty. As for investing in cryptocurrency, any gains made from the investment may be subject to capital gains tax. It is important to consult with a tax professional to understand the specific tax implications in your situation.
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• Nov 28, 2021 · 3 years ago
  Cashing out a T Rowe Price 401k and investing in cryptocurrency can be a risky move. While there may be potential for high returns, it is important to consider the tax implications. Depending on your income level and the amount withdrawn from your 401k, you may be subject to a higher tax bracket. Additionally, investing in cryptocurrency can be volatile, and any gains made may be subject to capital gains tax. It is advisable to consult with a financial advisor and a tax professional before making any decisions.
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• Nov 28, 2021 · 3 years ago
  Cashing out a T Rowe Price 401k and investing in cryptocurrency can be an exciting opportunity. However, it is crucial to understand the potential tax implications. When you cash out your 401k, you will likely be subject to income tax on the amount withdrawn. Additionally, investing in cryptocurrency can result in capital gains tax on any profits made. It is recommended to consult with a tax professional to ensure compliance with tax regulations and to optimize your tax strategy.
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