What are the tax implications of using a Schwab 529 plan to invest in digital currencies?

3 answers

• Global TreeJul 02, 2021 · 4 years ago
  When using a Schwab 529 plan to invest in digital currencies, it's important to understand the tax implications. The IRS treats digital currencies as property, so any gains or losses from their sale or exchange may be subject to capital gains tax. Additionally, if you withdraw funds from your Schwab 529 plan for purposes other than qualified education expenses, you may be subject to income tax and a 10% penalty. It's recommended to consult with a tax professional for personalized advice based on your specific situation.
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• PAKdevMay 18, 2024 · a year ago
  Investing in digital currencies through a Schwab 529 plan can have tax implications. The gains or losses from trading digital currencies may be subject to capital gains tax. If you withdraw funds from the plan for non-qualified expenses, you may face income tax and penalties. It's important to keep track of your transactions and consult with a tax advisor to ensure compliance with tax regulations.
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• jagritiSep 05, 2022 · 3 years ago
  Using a Schwab 529 plan to invest in digital currencies can have tax implications. The gains from trading digital currencies may be subject to capital gains tax, while withdrawals for non-qualified expenses may incur income tax and penalties. It's crucial to understand the tax rules and consult with a tax professional to ensure proper reporting and compliance with tax obligations.
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