Letitia James, New York's Attorney General, has asked Congress to prohibit crypto investments in retirement accounts. She stressed that hardworking Americans shouldn't have to worry about losing their retirement savings due to unsteady assets such as cryptocurrencies.
NYAG Letitia James urges Congress to ban crypto investments in retirement accounts
Letitia James, the New York Attorney General, announced Tuesday that she had "purged Congress leaders to adopt legislation that would prohibit retirement funds from investing in digital assets, like cryptocurrencies, digital coins and digital tokens."
James wrote the following in a letter she sent Tuesday to Sen. Ron Wyden, Sen. Mike Crapo (R–ID), Rep. Richard Neal and Rep. Kevin Brady.
For the benefit of New Yorkers, I am urging Congress to adopt legislation that would designate digital assets, e.g. digital coins and digital tokens, as assets that can't be bought using funds in Individual Retirement accounts (IRAs) or defined contribution plans such as 401(k), 457 plans and 457 plans.
James outlined a few reasons why cryptocurrencies should not be permitted in retirement plans. She stated that cryptocurrencies have no intrinsic value and are "often used as a tool for fraud and criminality."
The attorney general also mentioned the terra crash, FTX meltdown and subsequent crypto market sell-offs. FTX, a crypto exchange, filed for bankruptcy in November amid allegations that it had mishandled customer funds.
Attorney General James cited "recent crypto-market crashes and other market turmoil":
The risk of losing a lifetime's worth work by investing in crashing cryptocurrency could be disastrous for Americans' retirement savings.
"We have repeatedly seen the dangers of cryptocurrencies as well as the wild swings in these funds. The attorney general stated that Americans who work hard should not be worried about losing their retirement savings to unsteady assets such as cryptocurrencies.
James asks lawmakers to reject two bills that would allow cryptocurrency investments in retirement accounts. She wrote:
I appeal to Congress to reject the Retirement Savings Modernization Act… as well as the Financial Freedom Act of 2022.
James explained that the Retirement Savings Modernization Act would allow fiduciaries of 401(k), plans to make digital assets available for investment.
The Financial Freedom Act of 2022 would "prohibit Secretary of Labor from restricting or prohibiting investment options offered through a self directed brokerage window, i.e. the Secretary of Labor wouldn't be able to prohibit investments into digital assets," stated the NY attorney general.
Fidelity Investments (the largest 401(k), by assets), began offering bitcoin investments for retirement accounts this autumn. The U.S. Department of Labor has been troubled by this. Janet Yellen, Treasury Secretary, has warned crypto is "very dangerous" and stated that it is not suitable for most retirement savers. Three U.S. senators wrote to Fidelity CEO Abigail Johnson this week to urge her to discontinue offering bitcoin as a retirement account option.
What do you think of Letitia James, New York Attorney General, urging Congress to ban crypto investments in retirement funds? Comment below to let us know your thoughts.
Frequently Asked Questions
How is gold taxed in Roth IRA?
The tax on an investment account is based on its current value, not what you originally paid. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
The rules that govern these accounts differ from one state to the next. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. Massachusetts allows you up to April 1st. New York allows you to wait until age 70 1/2. To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
Is the government allowed to take your gold
Your gold is yours, so the government cannot confiscate it. You earned it through hard work. It belongs to your. But, this rule is not universal. Your gold could be taken away if your crime was fraud against federal government. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
What precious metals can you invest in for retirement?
The best precious metal investments are gold and silver. Both can be easily bought and sold, and have been around since forever. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: One of the oldest forms of currency, gold, is one of mankind's most valuable. It's stable and safe. It's a great way to protect wealth in times of uncertainty.
Silver: Investors have always loved silver. It is an excellent choice for investors who wish to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinium is another precious metal that is becoming increasingly popular. It's like silver or gold in that it is durable and resistant to corrosion. It's however much more costly than any of its counterparts.
Rhodium. Rhodium is used as a catalyst. It is also used to make jewelry. It is also very affordable in comparison to other types.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also much more affordable. It's a popular choice for investors who want to add precious metals into their portfolios.
What are the fees for an IRA that holds gold?
$6 per month is the Individual Retirement Account Fee (IRA). This fee includes account maintenance fees as well as any investment costs related to your selected investments.
You may have to pay additional fees if you want to diversify your portfolio. The type of IRA you choose will determine the fees. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
In addition, most providers charge annual management fees. These fees range between 0% and 1 percent. The average rate per year is.25%. These rates can be waived if the broker is TD Ameritrade.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
cftc.gov
bbb.org
finance.yahoo.com
How To
The best way online to buy gold or silver
First, understand the basics of gold. The precious metal gold is similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
There are two types today of gold coins. One is legal tender while the other is bullion. Legal tender coins are designed for circulation in a country. They often have denominations like $1 or $5 or $10.
Bullion coins can only be used as investment currency. They increase in value due to inflation.
They can't be exchanged in currency exchange systems. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. For every dollar spent, the buyer gets 1 gram of Gold.
Next, you need to find out where to buy gold. If you want to purchase gold directly from a dealer, then a few options are available. First off, you can go through your local coin shop. Another option is to go through a reputable site like eBay. You can also purchase gold through private online sellers.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
Another way to buy gold is by investing in physical gold. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. Physical gold should be stored in an impenetrable container, such a vault and safety deposit box to ensure its safety.
When buying gold on your own, you can visit a bank or a pawnshop. A bank will be able to provide you with a loan for the amount of money you want to invest in gold. Customers can borrow money from pawnshops to purchase items. Banks charge higher interest rates than those offered by pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold is easy too. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
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By: Kevin Helms
Title: NY Attorney General Urges Congress to Ban Crypto in Retirement Accounts
Sourced From: news.bitcoin.com/ny-attorney-general-urges-congress-to-ban-crypto-in-retirement-accounts/
Published Date: Fri, 25 Nov 2022 03:30:13 +0000
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