What are the tax implications of investing in cryptocurrencies after maxing out my Roth IRA?

1 answers

• Dec 29, 2021 · 3 years ago
  When it comes to investing in cryptocurrencies after maxing out your Roth IRA, you need to be aware of the tax implications. Any gains from your cryptocurrency investments may be subject to capital gains tax. The tax rate will depend on how long you hold the cryptocurrencies before selling them. If you hold them for less than a year, the gains will be taxed at your ordinary income tax rate. If you hold them for more than a year, the gains will be taxed at a lower capital gains tax rate. It's important to keep accurate records of your transactions and consult with a tax advisor to ensure you are complying with tax regulations.
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