By Solomon Odunayo
As a report has it, Cardano (ADA), the fifth-largest cryptocurrency by market capitalization, is now available for Crypto IRA/401k retirement accounts with iTrustCapital.
The new development was announced moments ago via the official Twitter handle of iTrustCapital, the Crypto IRA platform that allows investors to access digital assets and precious metals within their retirement accounts.
Read Also: Coinbase Describes Cardano (ADA) As One of the Biggest Crypto
The firm thereby urged users that are interested in investing in Tax-Free Cardano (ADA) to make Crypto Roth IRA their choice.
iTrustCapital tweeted, “The wait is over… Cardano is now available in your Crypto IRA! We are proud to support the cardano community and their environmentally sustainable blockchain!”
The wait is over…
Cardano is now available in your Crypto IRA!
We are proud to support the #cardano community and their environmentally sustainable blockchain!$ADAhttps://t.co/Miqs8KBtQI pic.twitter.com/fR2jbTjum1
— iTrustCapital (@iTrustCapital) April 14, 2021
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Difference between Crypto Investment via IRA and Non-IRA
According to iTrustCapital, when crypto holders invest through an IRA, there will be
- Tax-Free trades: Buy and sell as often as you want without creating a taxable event.
- No tracking: No taxable events mean no complex tracking needed.
- Compounding gains: Realized gains roll over year over year within the account. Sorry, IRS…NOT sorry!
- Tax-advantaged growth: Tax-deferred or tax-free distributions depending on the type of IRA.
Read Also: Cardano Venture Fund (cFund) Invests In COTI in Preparation for Smart Contract Implementation
On the other hand, when investing outside of an IRA:
- Taxable trades: Every sale for a profit creates a capital gain tax; if the position is held for less than 1-year, it is short-term capital gains, and if held for over 1-year, it is long-term capital gains.
- All movements must be tracked: Every buy, sell, and swap must be tracked accurately. If buying the same asset at different times and price points, a cost basis needs to be established for proper reporting.
- IRS payments: All realized gains are taxed on a yearly basis. This reduces your available capital to make future investments.
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