What are the tax implications of withdrawing cryptocurrency from a Vanguard Roth IRA?

1 answers

• Dec 26, 2021 · 3 years ago
  Hey there! So, withdrawing cryptocurrency from your Vanguard Roth IRA can have some tax implications. The IRS treats cryptocurrency as property, which means that any gains or losses from selling or exchanging cryptocurrency are subject to capital gains tax. If you've held the cryptocurrency for less than a year, the gains will be taxed as short-term capital gains, which are usually taxed at your ordinary income tax rate. If you've held the cryptocurrency for more than a year, the gains will be taxed as long-term capital gains, which are typically taxed at a lower rate. It's always a good idea to consult with a tax professional to get personalized advice based on your specific situation. Hope that helps! 😊
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