What are the tax implications of converting a Voya Roth 401k into cryptocurrency investments?

3 answers

• hasakiJun 25, 2020 · 5 years ago
  Converting a Voya Roth 401k into cryptocurrency investments can have tax implications. When you convert your Roth 401k into cryptocurrencies, it is considered a distribution, and you may be subject to taxes and penalties. The amount converted will be treated as taxable income in the year of conversion. Additionally, if you are under 59 ½ years old, you may also be subject to a 10% early withdrawal penalty. It is important to consult with a tax professional to understand the specific tax liabilities and how to handle them properly.
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• BesaMar 05, 2024 · 2 years ago
  Converting a Voya Roth 401k into cryptocurrency investments can be a complex process with potential tax implications. The tax consequences will depend on various factors, including your current tax bracket, the amount converted, and the holding period of the cryptocurrencies. It is advisable to consult with a tax advisor who specializes in cryptocurrency taxation to ensure compliance with tax laws and to minimize any potential tax liabilities. They can provide guidance on reporting requirements and help you navigate the tax implications of such a conversion.
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• Naima NorbergApr 24, 2022 · 4 years ago
  Converting a Voya Roth 401k into cryptocurrency investments may have tax implications. It is important to note that I am a representative of BYDFi and cannot provide personalized tax advice. However, generally speaking, when you convert your Roth 401k into cryptocurrencies, it is considered a distribution and may be subject to taxes. The amount converted will be treated as taxable income, and if you are under 59 ½ years old, you may also face an early withdrawal penalty. To fully understand the tax implications and potential liabilities, it is recommended to consult with a qualified tax professional.
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