What are the tax implications of using a 529 plan to invest in digital currencies?

3 answers

• Jason LJan 04, 2022 · 4 years ago
  Yes, you can use a 529 plan to invest in digital currencies. However, it's important to consider the tax implications before doing so. When you withdraw funds from a 529 plan for non-qualified expenses, such as investing in digital currencies, you may be subject to income tax and a 10% penalty on the earnings portion of the withdrawal. It's recommended to consult with a tax professional to fully understand the potential tax consequences.
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• EasycarusnetAug 10, 2020 · 5 years ago
  Absolutely! You can totally use a 529 plan to invest in digital currencies. But hold on, before you jump in, let's talk about the tax implications. If you withdraw money from your 529 plan for anything other than qualified education expenses, like investing in digital currencies, you might have to pay income tax and a 10% penalty on the earnings. So, make sure you know what you're getting into and consult a tax expert if you're unsure about the tax consequences.
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• david joegonoNov 15, 2022 · 3 years ago
  Yes, you can use a 529 plan to invest in digital currencies. However, it's important to note that the tax implications can be significant. If you withdraw funds from a 529 plan for non-qualified expenses, including investing in digital currencies, you may be subject to income tax and a 10% penalty on the earnings portion of the withdrawal. It's advisable to consult with a tax advisor to understand the potential tax consequences and make an informed decision.
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