Im thinking about cashing out my 401k and put it into a bitcoin IRA account, My hopes are to find a company that has 3 keys so even if that IRA company goes under I will still have access to get my money back by taking control.
My concern is how can I do this without having to pay TAXES on this money.
Any Ideas?
#grownostr
I will soon be doing the same via SwanBitcoin.com. I don't think there is a taxable event transferring from one to the other.
#growNostr
There is a way. I have "Unchained Capital" as the holder of my Bitcoin IRA. When talking about this with them, you can transfer from a 401K/403B into a Bitcoin retirement account, but if you're still working with the company that your Retirement Fund is with, you'll have to get their permission to move the funds. This is without tax consequences. I was sadly not able to get permission.
Swanbitcoin told me I have to cash out then move it by the help desk guy and direct me to someone that might be able to find a way to avoid it as if I cash out I will have to pay tax on it and that’s what I’m trying to avoid.
If you cash it out, why would you want to put it back into another government program? I would just put it directly into a hardware wallet.
You can do a direct transfer rollover where your current custodian sends a check to the new custodian to avoid taxes. If you cash out and they send you a check, they will withhold taxes and you have to put the entire amount (including the taxes they withheld) into the new account to avoid paying taxes on it.
Contact whoever you're going to use for the bitcoin IRA and tell them you want to roll your 401k into it. They should be able to give you the correct form to give to your 401k custodian.
It's a derivative/ancillary play -- but particularly with respect the the 'taxes' part --- MSTR in a Roth IRA is going to be a tough one to beat re: profit from BTC exposure with minimal exposure to taxes. ---- The notion is that MSTR stock trades based on BTC success...but its a traditional stock so you can use traditional account/instruments etc. -- So while not directly BTC...it is a BTC play with a strong 'tax' strategy ..as all of the gain the the Roth IRA will be tax free ...... super duper dope.
