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jomels11
New Member

If I reinvest a 401k withdrawal into crypto (not ira) within 60 days, will I avoid paying taxes on it?

 
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dmertz
Level 15

If I reinvest a 401k withdrawal into crypto (not ira) within 60 days, will I avoid paying taxes on it?

If you invest the funds in anything outside of a qualified retirement account, you have not done a rollover and the 401(k) distribution will remain taxable.

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4 Replies

If I reinvest a 401k withdrawal into crypto (not ira) within 60 days, will I avoid paying taxes on it?

The 60-day period is your timeframe to get the money into another tax-deferred account. 401 k or IRA.

dmertz
Level 15

If I reinvest a 401k withdrawal into crypto (not ira) within 60 days, will I avoid paying taxes on it?

If you invest the funds in anything outside of a qualified retirement account, you have not done a rollover and the 401(k) distribution will remain taxable.

jomels11
New Member

If I reinvest a 401k withdrawal into crypto (not ira) within 60 days, will I avoid paying taxes on it?

Thank You..

jomels11
New Member

If I reinvest a 401k withdrawal into crypto (not ira) within 60 days, will I avoid paying taxes on it?

Thank you..

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