Are there any tax implications when closing a 401k with Fidelity to invest in cryptocurrencies?

3 answers

• Nov 23, 2021 · 3 years ago
  Closing a 401k with Fidelity to invest in cryptocurrencies can have tax implications. When you close your 401k, you may be subject to taxes and penalties. The exact tax consequences depend on various factors, such as your age, the type of 401k plan, and the amount of money you withdraw. It's important to consult with a tax professional or financial advisor to understand the specific tax implications in your situation.
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• Nov 23, 2021 · 3 years ago
  Yes, there are tax implications when closing a 401k with Fidelity to invest in cryptocurrencies. The IRS treats withdrawals from a 401k as taxable income, and if you're under the age of 59 1/2, you may also be subject to a 10% early withdrawal penalty. It's crucial to consider these tax consequences before making any decisions. It's recommended to consult with a tax advisor to fully understand the potential tax implications.
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• Nov 23, 2021 · 3 years ago
  Closing a 401k with Fidelity to invest in cryptocurrencies can indeed have tax implications. The IRS considers withdrawals from a 401k as ordinary income, which means you'll have to pay income tax on the amount you withdraw. Additionally, if you're under the age of 59 1/2, you may also be subject to an early withdrawal penalty. It's advisable to consult with a tax professional to evaluate the potential tax consequences and explore alternative investment options that may have less tax impact.
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