What are the tax implications of using fidelity close roth ira to invest in digital currencies?

3 answers

• Harsha BJul 22, 2021 · 4 years ago
  When using Fidelity to close your Roth IRA and invest in digital currencies, there are several tax implications to consider. First, you may be subject to penalties if you withdraw funds from your Roth IRA before reaching the age of 59 and a half. Additionally, any gains from your digital currency investments will be subject to capital gains tax. The tax rate will depend on how long you held the investments before selling. If you held the investments for less than a year, the gains will be taxed at your ordinary income tax rate. If you held the investments for more than a year, the gains will be taxed at the long-term capital gains tax rate. It's important to consult with a tax professional to fully understand the tax implications and potential penalties before making any decisions.
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• Marsh DickensMay 03, 2022 · 3 years ago
  Closing your Roth IRA with Fidelity to invest in digital currencies can have tax implications. Withdrawing funds from your Roth IRA before the age of 59 and a half may result in penalties. Additionally, any gains from your digital currency investments will be subject to capital gains tax. The tax rate will depend on how long you held the investments before selling. If you held the investments for less than a year, the gains will be taxed at your ordinary income tax rate. If you held the investments for more than a year, the gains will be taxed at the long-term capital gains tax rate. It's important to consult with a tax advisor to understand the specific tax implications in your situation.
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• Hyperion LearnerJun 29, 2023 · 2 years ago
  Using Fidelity to close your Roth IRA and invest in digital currencies can have tax implications. If you withdraw funds from your Roth IRA before the age of 59 and a half, you may be subject to penalties. Additionally, any gains from your digital currency investments will be subject to capital gains tax. The tax rate will depend on how long you held the investments before selling. If you held the investments for less than a year, the gains will be taxed at your ordinary income tax rate. If you held the investments for more than a year, the gains will be taxed at the long-term capital gains tax rate. It's important to consult with a tax professional to fully understand the tax implications and potential penalties before making any decisions. Please note that this answer is for informational purposes only and should not be considered as financial or tax advice. Consult with a qualified professional for personalized advice.
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