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RE: How to grow your crypto investment completely tax free (US residents)

in #tax7 years ago (edited)

Not to mention there are contribution limits on IRA's as well as income related contribution limits that are specific to Roth IRAs as well as a penalty tax for excess contributions that remain in the IRA accounts. I'm pretty sure the wealthy don't benefit from Roth IRA due to income limitation.

Edit: I believe 39.6% bracket = 20% cap gains.

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What is making me cringe is the example of making $10k contributions to an IRA is in excess of the statutory annual limit for an account. Beware of 6% penalty people....

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

To get around this, it is better to set up a Solo 40o1k with checkbook control. You have much greater depository limits (above $50k+) while enjoying many of the same benefits. The only caveat is that you have to be self-employed in some way... you must file a Schedule C showing income. So do something you might enjoy like start an Uber business or something that will send you a 1099. You can deposit the amount you claim on Schedule C income.