Putting (Some of) Your Retirement Savings into Digital Currency

Putting (Some of) Your Retirement Savings into Digital Currency

For most people, mobile apps currently provide the easiest method for investing in digital currencies/assets, such as…

The good news is that if you have your primary savings tied up in retirement accounts, you can use an existing 401(k) or individual retirement account (IRA) as a funding source for purchasing digital currencies. It’s important to note that 401(k) and IRA accounts typically allow you to hold stocks, CDs, mutual funds, cash and bonds. However, you won’t be able to purchase or hold digital currencies in your existing retirement savings account(s). These accounts are not structured in a way that will allow you to hold property, which is how the IRS classifies digital currency for tax purposes, since it has “an equivalent value in real currency.” Therefore, you will need to open a new self-directed IRA that allows you to hold digital currency inside a retirement account.

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