What are the tax implications of minors investing in digital currencies with a Vanguard Roth IRA?

3 answers

• sholevvJun 28, 2023 · 2 years ago
  Minors can invest in digital currencies with a Vanguard Roth IRA, but there are some important tax implications to consider. According to the IRS, minors are subject to the same tax rules as adults when it comes to investing in digital currencies. This means that any gains from the sale of digital currencies held in a Vanguard Roth IRA may be subject to capital gains tax. It's important for minors to keep track of their transactions and report any taxable gains on their tax returns. Additionally, there may be restrictions on the types of digital currencies that minors can invest in, so it's important to consult with a tax professional or financial advisor for specific guidance.
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• luciNov 13, 2024 · 8 months ago
  Investing in digital currencies as a minor with a Vanguard Roth IRA can have tax implications. Minors are generally subject to the same tax rules as adults, so any gains from the sale of digital currencies held in a Vanguard Roth IRA may be subject to capital gains tax. However, it's important to note that minors may have a lower tax rate for capital gains depending on their income level. Minors should consult with a tax professional or financial advisor to understand their specific tax obligations and any potential tax benefits.
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• Tammam R RahhalJul 19, 2023 · 2 years ago
  As an expert at BYDFi, I can tell you that minors can invest in digital currencies with a Vanguard Roth IRA, but there are tax implications to consider. Minors are subject to the same tax rules as adults, so any gains from the sale of digital currencies held in a Vanguard Roth IRA may be subject to capital gains tax. It's important for minors to keep track of their transactions and report any taxable gains on their tax returns. Additionally, there may be restrictions on the types of digital currencies that minors can invest in, so it's important to consult with a tax professional or financial advisor for specific guidance.
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