Crypto Taxes

[Shank20]

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!

[marctu · Accepted solution]

@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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