What are the tax implications of holding cryptocurrencies in a precious metals IRA?

1 answers

• Davies ZachariassenSep 21, 2022 · 3 years ago
  Holding cryptocurrencies in a precious metals IRA can have tax implications that you need to be aware of. The IRS treats cryptocurrencies as property, so any gains or losses from selling or exchanging them are subject to capital gains tax. If you hold cryptocurrencies in a traditional IRA, you may enjoy tax-deferred growth, meaning you won't owe taxes until you withdraw the funds. On the other hand, holding cryptocurrencies in a Roth IRA can provide tax-free growth, allowing you to avoid taxes on any gains. However, it's important to note that there are contribution limits and eligibility requirements for IRAs, so it's advisable to consult with a tax professional or financial advisor to ensure you understand the specific rules and regulations that apply to your situation.
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