How does tax loss harvesting work for digital assets in a 401k plan?

1 answers

• Funch NewtonApr 14, 2024 · a year ago
  Tax loss harvesting for digital assets in a 401k plan is a strategy that can be implemented to minimize tax obligations. This involves strategically selling digital assets that have decreased in value to offset capital gains and reduce taxable income. By doing so, investors can potentially lower their overall tax liability and maximize their after-tax returns. However, it's important to note that tax loss harvesting should be done in accordance with IRS regulations and guidelines. It's also advisable to consult with a tax professional or financial advisor to ensure that you are implementing the strategy correctly and in line with your overall investment objectives.
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