Are there any tax benefits associated with custodial or individual 529 plans when investing in digital currencies?

3 answers

• Nov 26, 2021 · 3 years ago
  Investing in digital currencies through custodial or individual 529 plans can potentially offer tax benefits. These plans are designed to help individuals save for education expenses, but the IRS has not provided specific guidance on their use for investing in digital currencies. However, some tax experts argue that if the digital currencies are considered qualified education expenses, the earnings on investments made through these plans may be tax-free. It is important to consult with a tax professional to understand the specific tax implications and requirements for investing in digital currencies through custodial or individual 529 plans.
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• Nov 26, 2021 · 3 years ago
  When it comes to tax benefits associated with custodial or individual 529 plans, investing in digital currencies can be a gray area. While these plans are primarily intended for education savings, the IRS has not explicitly addressed the tax treatment of digital currencies within these plans. As a result, it is unclear whether any tax benefits would apply. It is advisable to consult with a tax professional to determine the potential tax implications of investing in digital currencies through custodial or individual 529 plans.
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• Nov 26, 2021 · 3 years ago
  BYDFi, a digital currency exchange, offers custodial and individual 529 plans for investing in digital currencies. These plans provide potential tax benefits, as earnings on investments made through custodial or individual 529 plans can grow tax-free. However, it is important to note that the tax treatment of digital currencies within these plans is subject to IRS regulations and guidelines. It is recommended to consult with a tax professional to understand the specific tax benefits and requirements associated with investing in digital currencies through custodial or individual 529 plans.
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