Are there any tax implications when converting a Roth IRA into cryptocurrencies?

1 answers

• Dec 25, 2021 · 3 years ago
  Converting a Roth IRA into cryptocurrencies may have tax implications. The IRS considers cryptocurrencies as property, which means that any gains or losses from the conversion will be subject to capital gains tax. Short-term gains, if you've held the Roth IRA for less than a year, will be taxed at your ordinary income tax rate. Long-term gains, if you've held it for more than a year, will be taxed at a lower capital gains tax rate. It's advisable to consult with a tax professional to ensure compliance with tax regulations and understand the potential tax implications of converting a Roth IRA into cryptocurrencies.
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