What are the tax implications of rolling over a John Hancock 401k into a cryptocurrency investment?

3 answers

• Dec 17, 2021 · 3 years ago
  From a tax perspective, rolling over a John Hancock 401k into a cryptocurrency investment can have several implications. Firstly, it's important to note that the IRS treats cryptocurrencies as property, not currency. This means that any gains or losses from the investment will be subject to capital gains tax. Additionally, if you withdraw funds from your 401k before the age of 59 and a half, you may be subject to an early withdrawal penalty of 10%. It's crucial to consult with a tax professional to understand the specific tax implications based on your individual circumstances.
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• Dec 17, 2021 · 3 years ago
  Alright, let's talk taxes! Rolling over your John Hancock 401k into a cryptocurrency investment can have some tax consequences. Since cryptocurrencies are considered property by the IRS, any gains or losses you make will be subject to capital gains tax. This means that if you sell your cryptocurrencies for a profit, you'll owe taxes on that gain. On the other hand, if you sell at a loss, you may be able to deduct that loss from your taxable income. Keep in mind that tax laws can be complex, so it's always a good idea to consult with a tax professional for personalized advice.
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• Dec 17, 2021 · 3 years ago
  When it comes to the tax implications of rolling over a John Hancock 401k into a cryptocurrency investment, it's important to consider the potential capital gains tax. Cryptocurrencies are treated as property by the IRS, which means that any gains you make from selling your cryptocurrencies will be subject to capital gains tax. The tax rate will depend on how long you held the cryptocurrencies before selling. If you held them for less than a year, the gains will be considered short-term and taxed at your ordinary income tax rate. If you held them for more than a year, the gains will be considered long-term and taxed at a lower rate. Remember to keep accurate records of your transactions for tax purposes!
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