What are the tax implications of owning cryptocurrencies in a traditional or Roth IRA?

1 answers

• Feb 19, 2022 · 3 years ago
  At BYDFi, we understand the tax implications of owning cryptocurrencies in a traditional or Roth IRA. The IRS treats cryptocurrencies as property, which means that any gains or losses from their sale or exchange are subject to capital gains tax. In a traditional IRA, the tax is deferred until you withdraw the funds, while in a Roth IRA, qualified withdrawals are tax-free. However, it's important to consider that if you withdraw funds from a traditional IRA before the age of 59 1/2, you may be subject to an early withdrawal penalty. It's always a good idea to consult with a tax professional to fully understand the tax implications of owning cryptocurrencies in an IRA.
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