Is the best move to cash out 401k, pay taxes and then self custody Bitcoin? Or is there a way to continue tax deferral and somehow have it invested in Bitcoin? This is a question the masses need to know…
Discussion
I think that depends a lot on each individual’s situation. I personally have about 2x the amount of Bitcoin outside of retirement accounts as the value in my 401k. I don’t mind holding some $MSTR in my 401k but I think it would be different if I didn’t have the amount of “real” Bitcoin I do outside of retirement accounts.
That is a point I have considered. But at the end of the day, I keep coming back to why would I want anything to do with the fiat standard?
Totally get that. There’s not much I hate more than paying taxes so emptying my 401k would be painful. Then again by biting the bullet and paying the taxes and penalties I could exit their game all together… so not sure there is a correct answer
Glad we brainstormed this together! I guess it comes down to a personal decision ultimately 🤛
The fact that you prefaced your answer with “individual situation” speaks volumes. Most people will just fanboy btc and say “go all in no matter what” which is absolutely awful advice. Appreciate anyone who can keep a level head about this stuff.