Hello,
My question is if I sell some crypto and put the proceeds into an IRA account, is that still considered a taxable event? Thank you!
You'll need to sign in or create an account to connect with an expert.
@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"
@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"
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
mansi202020
New Member
Csenn1988
Returning Member
AndrKis
New Member
brittmorrow13
New Member
0eeb081cc54f
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.