It looks like we’re approaching everyone’s favorite season, so we thought we should offer some quick tips.
Yep, we’re talking tax season!
iTrustCapital provides an IRA software platform for investing in crypto through your retirement account. But, how do these types of accounts factor into your yearly taxes? After all, we thought it was tax-free*!
Well, for clients with Traditional IRAs who are not taking distributions, we have good news. iTrustCapital works with third party IRA custodians who handle the tax forms required for Traditional IRA accounts, unless you are taking distributions.
If you have begun taking distributions, we recommend consulting with a tax professional to make sure you complete all the necessary steps for filing this year. Remember, iTrustCapital does not provide legal, investment or tax advice.
Roth IRAs are different from Traditional IRAs. You may not need to pay taxes, but you may need to fill out a few forms. If you converted an account into a Roth, you may also fall into this category. These forms may include a Form 1099-R, Form 1040 or 1040A, and Form 8606, among others.
We recommend consulting with a tax professional for more details on what you’ll need, and to ensure you complete all your requirements. For more information and guidance from the IRS, go to www.irs.gov.
There’s definitely some great information at the link above, so if you’re hungry for more tax info, we recommend visiting the IRS website!
This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.
iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.
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