@Shank20 thank you for the question. I love the fact that you are thinking about making a retirement contribution. So, the key here is you are selling Cryptocurrency and then putting the proceeds in an IRA, so this would be a taxable event.
If you are contributing to a Traditional IRA, which is tax-deferred, meaning that you don’t have to pay tax on any interest or other gains the account earns until you withdrawal the money, it may be eligible for a tax deduction though. See this for more details: Deductions Allowed for Contributions to a Traditional IRA
In general, if the Crypto is in a Traditional IRA, you will pay no tax until you distribute the funds. If it is in a Roth IRA, you would not pay taxes when you distribute the funds. This would need to be at retirement age though.
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@Shank20 thank you for the question. I love the fact that you are thinking about making a retirement contribution. So, the key here is you are selling Cryptocurrency and then putting the proceeds in an IRA, so this would be a taxable event.
If you are contributing to a Traditional IRA, which is tax-deferred, meaning that you don’t have to pay tax on any interest or other gains the account earns until you withdrawal the money, it may be eligible for a tax deduction though. See this for more details: Deductions Allowed for Contributions to a Traditional IRA
In general, if the Crypto is in a Traditional IRA, you will pay no tax until you distribute the funds. If it is in a Roth IRA, you would not pay taxes when you distribute the funds. This would need to be at retirement age though.
**Say "Thanks" by clicking the thumbs up icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"