In this video, John Bowens and John Kmetz discuss the reasons why investors are beginning to add cryptocurrency to their IRAs.
Discover your self-directed cryptocurrency investing options: https://www.trustetc.com/investments/cryptocurrency/?utm_source=social&utm_medium=youtube&utm_campaign=research_education&utm_term=crypto_7-9
Tax laws and guidelines for cryptocurrency are very ambiguous right now. Any time you buy, sell, or trade cryptocurrency, it is considered a taxable event.
If you hold cryptocurrency anywhere that isn’t a tax-advantaged account, you are subject to capital gains tax.
Cryptocurrency owned in a Roth IRA or another tax-advantaged account is only taxable when you decide to trade or sell that cryptocurrency. However, if you sell cryptocurrency and hold the value in stablecoin in your Roth IRA, that is not considered a taxable event because you are holding the value. You can then use the stablecoin to buy other cryptocurrency and it would not be considered a taxable event.
Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust Company is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.