Yeah, you know, every April 15th. But there is new way to reduce your income taxes. And I wanted to be sure you have the information.
Individual Retirement Accounts have been around for decades. Surely you have heard of IRAs even if you are not using one.
For 2021, an individual can defer paying income tax on $6,000 of income ($7,000 if you are 50 years old or older) by placing that amount of income or assets in an IRA. The taxes are paid later when the funds are withdrawn, and the taxpayer is retired or at least earning at a lower tax rate.
Not only that but the asset/s you place in the IRA grow tax free and any gains are only taxed when withdrawn, again, presumably at a lower tax rate.
There is more than one kind of IRA and various rules apply, so you really need to review the subject with your tax advisor. But the above are some basics.
What’s “new” is the growing use of IRAs to hold cryptocurrencies. If you have the view that cryptocurrencies are not only here to stay, but will continue to appreciate, as do I, they make an excellent choice for assets to place in your IRA.
And the good news is that it is not too late for 2021 taxes. You can place funds in your IRA for a deduction on your 2021 tax return as late as April 15, 2022.
To that end I came across an article that lists seven self-directed cryptocurrency IRA service providers. The article is here: https://cryptonews.com/exclusives/seven-bitcoin-iras-reviewed-for-2022.htm
And here are the 7 crypto-IRA service providers. You have 90 days, plenty of time to check them out.
Yes, the cryptocurrency market is volatile. But from a longer term, strategic perspective, I believe cryptocurrency IRAs make great sense. Again, if you are interested, you have 90 days to check out the providers above or any others you come across.
Save on your income tax with a crypto IRA that enjoys the prospect of handsome capital gains in years to come. I would select bitcoin or Ethereum, but you may like others – it’s your call.
Listen, no one can guarantee what the crypto markets will do in future years, and past performance is no guarantee of future results, but if cryptocurrencies continue to grow as they have you could be setting yourself up for some serious retirement wealth and saving on your 2021 taxes as well.
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John Truman Wolfe