Good luck to you.
HabBear, Thanks for your reply. I am thinking about just taking $10k from my 401k. They say you can roll over your balance and spread out the investment among a few of the most popular coins (i.e. BTC, ETH, LTC, XRP, BCH, ETC). I am thinking of just spreading it among the top 3 (50% BTC, 25%ETH, and 25%LTC). The one thing I am worried about is how long you have to leave it in there. Are the rules the same as traditional IRA's? Are there penalties for withdrawing early?
Thanks in advance!
Sounds like a good plan. Is that $10k at 10% or less than your total 401k balance? Just curious.
Your plan to spread the investment across BTC, ETH, and LTC is wise.
The rules are the same for all IRAs, Traditional or Roth. You're not supposed to withdraw any money until you're 59 1/2 years old. If you do, you'll pay a 10% penalty on the amount you withdraw and you'll have to pay taxes, either:
- Income taxes on all that you withdraw if it's a Traditional IRA, or
- Capital Gains taxes on all the gains related to the balance (coins) you withdraw if it's a Roth IRA
Since you're depositing this money from a 401k, you must be opening a Traditional IRA...which means you've never paid taxes on this money.
For Crypto currencies, time is on our side. The fact that you have to leave this money in the account until retirement isn't a terrible thing.