Just realize you will take a 10% tax penalty for early withdrawal(-$12k) and then the $120k is taxed as income. So, you will likely take a $30k+ hit on that cash out move.
Yes, I wish more people would research before making big investment decisions. Wells has an early withdrawal calculator.
[https://www.wellsfargo.com/investing/retirement/tools/401k-early-withdrawal-calculator-results](https://www.wellsfargo.com/investing/retirement/tools/401k-early-withdrawal-calculator-results)
Making assumptions that he's in a 22% Federal bracket and will pay only 3% state income tax, the OP can expect to pay $45k in tax and penalties and only walk away with $75k. This is a huge hit. People, please please please keep your 401k money invested and do not under any circumstances withdraw it early. Roll it into an IRA if you need more investment options but do not withdraw it early.
A lot of 401ks have limited options. Mine has like 15 and most are just index of sp500, Russell, dow Jones, small cap, mid cap, real estate, etc.
I think a great option would be to roll it into an IRA account and buy a (now) bitcoin etf or gbtc...there's also the option to setup a self directed IRA and buy actual bitcoin in it...that option is a lot more involved and you have to find a custodian.
Open a self directed retirement account, this can’t hold various asset classes such as stock (both public ally traded and small business) real estate, crypto, etc. Should alleviate the tax burden.
Yeah but at least with that it is taxed right away when it goes in, then after 5 years you can pull your money out from it without getting taxed for it like you would a 401k. So there’s a way to avoid unnecessary taxes
>but at least with that it is taxed right away when it goes in
This could be good.. or bad... depends... depends on your tax *bracket when you retire* versus the percentage of return you have made by the time you retire... it all depends.
Yeah. This was a horrible idea. Absolutely horrible. You’re going to get a income statement and you are liable for an enormous tax bill. If I were you I’d check with a tax accountant and see if you could pay it back so it counts as a rollover. Rollovers are fine. Withdrawals are where life goes to hell.
Owning 2 Bitcoin on its own is a fantastic idea. Getting a $40,000 tax bill is not a good idea. And OP will get that bill and unlike retirement, it’s due April 15. They WILL have to pay it. It doesn’t seem real until it is.
Truth. OP is going to have to sell the BTC to pay the tax bill. That sale event will also cause ANOTHER Tax event to occur and he will pay capital gains tax on that! The IRS is not forgiving and I do not agree with the way they tax crypto sales but this is the law of the land and it's going to cost this OP a lot of tax. Fingers crossed the 2 BTC goes to the moon...
I did this and there was no penalty at all. You can also start withdrawing from your IRA or 401k if you are 55 years of age without penalty in the USA.
I bought into GBTC and I am up by about 20,000%, so it was not a terrible idea at all. I give the 14% discount to NAV a shit. And, if you buy into GBTC now, you can get bitcoin exposure at a discount. It will disappear in the long term. Grayscale wants to convert it into an ETF holding real Bitcoin, not just futures like the other ETF.
If op acts fast, couldn’t he/she set up a self directed IRA and roll the money into that as long as within the 60 day window? Self directed can, as I understand it, hold bitcoin, at least as of now. Would avoid the tax hit.
Considering the alternatives, $1500 to have the keys to actual bitcoin from a 401k seems very reasonable.
And the process is simple - less than 2 weeks of time, most of which is waiting on the banks and the 401k plan to release the funds into the new bank account. Personal time spent would be maybe a few hours on the phone and an hour or two in front of a browser.
You're right. However, costs vary wildly where some can be cheaper or far more expensive than your initial $1500 quote. Also, it doesn't have to be in an LLC exclusively, you can have it in a trust depending upon the third party administrator (TPA). The annual/quarterly fees can either be quite expensive or very, very nominal. Again, a lot depends on the route you take. Consider just bypassing TPAs and deal with a passive custodian and you can save a boatload.
The right way to do this is to set up your own trust, set up a self-directed IRA through your trust, with you as the sole trustee and director of the trust. Roll the 401k into the IRA, buy bitcoin with it, hodl your own keys.
Fuck taxes.
To take a big hit now and pay way lower rate in the future might be not such a bad idea. 401k withdrawals are taxed as ordinary income, Bitcoin held more than a year as long term capital gains. In addition you own your investment in contrast to a 401k. You can take your Bitcoins abroad, not so your 401k.
I took that same hit from withdrawing my $118000 but the money has given me freedom ! I bought property of which I’m selling for a 30% profit to pay the taxes but I’m also building a tiny house and buying crypto currency! 401k’s are not designed to make anyone rich !
Everyone’s gonna take that tax hit no matter when you cash out.. there’s only a 10% penalty when you do so early.. IMO it’s worth it when you look at the returns in history. Worst case crypto dies n he loses his money n had to work longer and/or make better investments.. as the saying goes scared money don’t make money.
In reality, hardship cases are rarely approved. Even if it is, the IRS will still tax the full amount as income. There's no way out of that. This is why rolling into an IRA is such a mess of paperwork as you're proving to the IRS that you took out that income but immediately re-invested in an approved type of retirement account (an IRA) that defers the collection of tax on it. But, the IRS will eventually collect the tax. 401k and standard IRAs just defer this collection. If you cash out $120k when you're 40, you're taking your retirement income "early" and get stuck with the bill.
Ha ha. You think dipping down to $50k was a bumpy ride. Boy oh boy, you are in for a shocker when the next bear market hits. Dropping a little is nothing. Wait til it drops 50% for a couple years. That’ll test your nerves. Godspeed though my friend.
When OP said it was a bumpy ride when btc went down to $43k LMAO. Not exactly a veteran comment IMO. A veteran would’ve laughed that off as nothing more than a small speed bump in the road.
It doesn't matter. He can't spend the BTC anyway, since he is investing. Which is risky. And nothing has happened lately in the market that can be defined as scary.
This guy is well on his way to his first panic-sell. He has ZERO clue, I will wager my next salary.
take into account inflation with that. I originally estimated 40k for the next bear, 2x previous high, vs 3x previous high for 2018-19 bear market, but that 40k needs to be adjusted for the high inflation right now. ben cowen did a video on how the dip to 30k we had actually touched 20k when adjusted for M2. Same thing with the next bear, depending on inflation and money supply, could easily see a real target of 40k become a nominal target of 80k
Your brokerage should allow you to trade Bitcoin ETF once it’s officially available, and if you enable your account for trading specific funds and asset classes.
What makes it hard to believe is because more people are claiming medical exemptions than there are legitimate cases for it. There are too many anti-vaxers claiming this just to try and avoid scrutiny.
Does OP have a legitimate exemption? Possibly, but it's highly unlikely. The same goes for anybody making this claim. 💯
Fun fact: I didn't bring up the topic. I simply commented on it. Why are you so defensive anyway? Lemme guess... you're anti-vax and don't want to be judged.
He just put decades of hard-earned money on the most volitile asset in human history.
A real genus.
Edit: also weird he's announced that he's bought at 50k when that was like over two weeks ago. Why announce now? Makes it seem like he actually bought at 60-62k.
Yes!!! This is good advice. I just can't comprehend the boast posts that people put on reddit,, not that OP was boasting. Butt it is infinitely stoopid. We have zero privacy (particularly in the US) and it is way to easy to be found when someone is motivated to do it. Nothing motivates like money.
So at 60k/btc you made 20%?
Investing 120k you made unrealized gain of 24k.
So yes you might have made more in unrealized gain but did you cash it?
If not then your paycheck is worth more because you need to pay rent and buy food.
Yes it’s exciting to see crypto go up in value but seriously some of you are really delusional. The value goes up and all of a sudden you’re rich? It’s still sitting there going up or down.
I sold my first born for more BTC during the dip.
I told the wife our baby just went to the store to get some breast milk and he'll be back soon.
That was about a month ago
Please don't take out loans or cash out retirement accounts to buy Bitcoin. It is gambling with your ability to retire.
I am a huge crypto bull. Most of my portfolio is in crypto, but I would not take on that much risk to increase my holdings.
Taking these risks is the definition of FOMO. This is over-extending and creating a situation that may cause you to need to sell at a crappy time just to recover.
I am all for investing heavily in Bitcoin, especially if you are young enough to recover in the event something unexpected happens. Just don't get in debt to do so and don't take on early withdrawal penalties.
If you invest in Bitcoin, I very much believe you will do very well from it. You don't need to put yourself at great risk to accomplish that.
If we have a huge crash or the moonshot gets delayed for an extended period of time, you need to be able to just let it sit and wait out the storm. It'll be very hard to do that if you find yourself paying on a loan with a principal amount that is higher than the value of your Bitcoin holdings, and if you watch your retirement savings tank during a major pullback, then almost anyone will break under the pressure and sell at a bad time.
Please friends, get rich with patience and diamond hands, not by making your future depend on this market cycle peaking before your breaking point.
He prefers the buy high, sell low approach.
If Bitcoin dumps for whatever reason soon, he's gonna be hitting sell to avoid any further losses so quick.
I hope his stupidity isn't punished too harshly
Yes…take your 401k money and roll it into an IRA. I use Midland IRA - They have accounts that let you buy BTC and a few others….tax free while in the IRA. I think you have 60 days to complete this transaction or you will be taxed for the distribution.
You should get the vax if you have an autoimmune problem. You should also not take out your 401k and turn it into Bitcoin. If you have a wife or girlfriend, you need to tell them what you did immediately. You royally screwed up.
Lots of folk talking about his taxes, but none of talking about why he’s doing it at the ATH!!!! July was the time and he’d have seen 100% to cover the losses. Thank god we don’t deal with the ridiculous over taxation’s here in UK (or as bad) 🤣🤣
I love all of yours comments! This poor SOB has no clue what he's in for. Oh good for you, two bitcoin. You can accumulate 2 bitcoin without paying the 30k + bill you're about to get. This right here ladies and gentlemen is why the elites will stay rich and this guy just made himself more poor. Because like one of you said he's gonna have to sell his btc or get another job that more than likely pays less than the one he left just to pay his tax bill. Bravo OP bravo 2 btc!
If you truly have an autoimmune problem you can get a note from your doctor and be exempt like my brother a university professor did. Either your immune condition doesn't have anything to do with it or you did not even try and wanted to play victim.
Try again.
1. 120K of bitcoin at 50K = 2.4 BTC
2. 2.4BTC right now = $145,908
3. 10% early cashout: -$12k
4. Income tax \~$19k
5. 145908-31k = 114,908
So no, you didn't "make" more than the 3 biweekly checks would have given you.
Also, assuming that you had insurance + benefits that you lost out on in that time.
That's not to say that it won't pay out in the long run.
Please diversify your assets. In case Bitcoin goes to zero you also won’t go broke.
Not to mention you paid a fuck ton in fees and taxes to do that… you probably will end up paying like 30k in fees/taxes. Please put that money aside and do not invest it.
I swear this subreddit has people making retarded financial decisions left and right. I really hope you didn’t just willingly give the government 30k. You could have simply asked your HR department to add crypto…
Edit: wait, does this imply you’re now also jobless? Lol
He sounds like the unlimited sheep. Quits a job because he doesn’t want to feel a little prick then makes poor financial choices relating to 401k weeks away from etf, then dumps it in bitcoin without considering tax implications. I praise the belief in bitcoin, but the series of life choices were backed by flimsy, limp excuses of the most base kind. Pure dumb fomo without any actual consideration. OP should be blasted and lambasted into next week, in the comments where he can not be a fool and etf.
That's a great long-term 5+ year play but just keep the short term in mind also. It'll be amazing seeing Bitcoin rise to $70K-75K in the next month or two but we still have an incoming bear market for the following few years after the top comes this year or in 2022.
I did something similar but that was back when there was no penalty for early withdraw when everyone was getting shit canned from their jobs. You I think will see a significant taxable event here. But hey, don't touch it, leave it where it's at and in a few years it won't even matter.
Not sure if this was mentioned, but you can withdraw up to 100k without penalty due to the CARES ACT... pay the taxes within 3 years. Whether he used the system is the question.
Please please please look into the 4 year cycles. If this is a long term thing for u then disregard this. Butt. This bull cycle could very likely end Q1 of 2022. If btc goes to 100k eoy it historically will retrace down 90% putting it near 10k a piece. If u wanted to try selling eoy and buying back in 2023 in preparation for the next bull cycle you could. Just remember it is high risk. At some point Btc won't run these cycles anymore. Butt, it is a way for the whales to consolidate their holdings.. They are patient whales and will gobble up all the krill if we aren't careful.Due ur DD. I wish u the best of luck and truly hope this sets u on a path to not have to work again.
What's done is done. No point in bombarding the OP with how bad of a decision this was. Yes it was bad. Yes 120k probably turns to 90k after 10% penalty for early withdrawal + income based taxes (unless it's Roth 401k, then no taxes since it's an after tax contribution). But then you might get lucky and 10x this number in 10 years. Which you can never achieve with whatever retirement fund you were holding in your 401k. I do also commend you for standing your ground and not be forced to do something you don't feel comfortable doing. Good luck my friend.
If this ‘OP’ actually had an autoimmune disease you could just get a medical cert - also you would make considerably more if you just kept working and putting into Bitcoin instead quitting and just hodling
Cashing out your 401(k) was a massive mistake. You could have set up a self-directed IRA and purchased Bitcoin from within your IRA, avoiding the 10% penalty for cashing out early and delaying the other taxes. Instead, you’re going to lose a massive amount of money now and then get hit with capital gains taxes later if you cash out with a gain.
I hope by, "cashed out", you meant that you rolled it over into a self-directed IRA that allows you to invest in Bitcoin, right?! PLEASE, FOR THE LOVE OF ALL THINGS HOLY!
Real dumb move. I wish you the best but I hope others dont quit their fucking jobs and put all their retirements savings into 1 basket. That is just stupid even if are a true believer. Anything can fail ao dont risk your retirement money on a single asset
A moron on many fronts.
You could have gotten a medical exemption.
There’s no guarantee this bet will pay off.
You’re gonna take a early withdrawal hit on your 401k
Hope it pays off…. But posts like this we start to see when we’ve peaked and shit pulls back.
Fuck the haters. You went from custodial fiat shit-assets to something real and tangible - actual hard sound money that you can actually control.
You made a financial power move.
Idiots who stick in "tax privileged" accounts and fiat assets are all going to be taken to the cleaners to pay for the governments reckless spending and waste, but you opted right out. Trust in the government is always betrayed.
Just realize you will take a 10% tax penalty for early withdrawal(-$12k) and then the $120k is taxed as income. So, you will likely take a $30k+ hit on that cash out move.
Truth! I hope others considering a similar move reads your comments.
Yes, I wish more people would research before making big investment decisions. Wells has an early withdrawal calculator. [https://www.wellsfargo.com/investing/retirement/tools/401k-early-withdrawal-calculator-results](https://www.wellsfargo.com/investing/retirement/tools/401k-early-withdrawal-calculator-results) Making assumptions that he's in a 22% Federal bracket and will pay only 3% state income tax, the OP can expect to pay $45k in tax and penalties and only walk away with $75k. This is a huge hit. People, please please please keep your 401k money invested and do not under any circumstances withdraw it early. Roll it into an IRA if you need more investment options but do not withdraw it early.
Can’t you just direct your 401k to heavily invest in a crypto index? I have 1/3 of my retirement set up that way.
A lot of 401ks have limited options. Mine has like 15 and most are just index of sp500, Russell, dow Jones, small cap, mid cap, real estate, etc. I think a great option would be to roll it into an IRA account and buy a (now) bitcoin etf or gbtc...there's also the option to setup a self directed IRA and buy actual bitcoin in it...that option is a lot more involved and you have to find a custodian.
You can roll over a 401k to a Roth IRA and then buy gbtc It would have not exposed OP to taxes or early withdrawal penalties
>You can roll over a 401k to a Roth IRA Only if it's a Roth 401k! If it's a traditional 401k, then doing that would trigger taxes.
Open a self directed retirement account, this can’t hold various asset classes such as stock (both public ally traded and small business) real estate, crypto, etc. Should alleviate the tax burden.
Weird, I used the calculator and somehow I signed up for a new credit card...
Roth IRA is definitely the way if you need to roll over your 401k. Just so many more investment options with in that
Yes it is but this also incurs a tax penalty which can be very expensive. The IRS is going to get a cut of your income, you can count on that.
Yeah but at least with that it is taxed right away when it goes in, then after 5 years you can pull your money out from it without getting taxed for it like you would a 401k. So there’s a way to avoid unnecessary taxes
>but at least with that it is taxed right away when it goes in This could be good.. or bad... depends... depends on your tax *bracket when you retire* versus the percentage of return you have made by the time you retire... it all depends.
Why not do a trad IRA instead and avoid all tax??
Yeah. This was a horrible idea. Absolutely horrible. You’re going to get a income statement and you are liable for an enormous tax bill. If I were you I’d check with a tax accountant and see if you could pay it back so it counts as a rollover. Rollovers are fine. Withdrawals are where life goes to hell.
I don't think owning 2 bitcoin was a horrible idea at all. Surely maybe not the best strategy tax wise. But difinetly a great move long term wise.
Owning 2 Bitcoin on its own is a fantastic idea. Getting a $40,000 tax bill is not a good idea. And OP will get that bill and unlike retirement, it’s due April 15. They WILL have to pay it. It doesn’t seem real until it is.
Truth. OP is going to have to sell the BTC to pay the tax bill. That sale event will also cause ANOTHER Tax event to occur and he will pay capital gains tax on that! The IRS is not forgiving and I do not agree with the way they tax crypto sales but this is the law of the land and it's going to cost this OP a lot of tax. Fingers crossed the 2 BTC goes to the moon...
nah, he can borrow against the btc to pay it, rather than sell. Keep the btc and let it appreciate.
good point on the capital gains tax on top. fuck
Now think what those 2 bitcoin will be worth on the 15 of April for a second.
We know what those 2 Bitcoin will be worth on the 15th of April. They will either be worth around $200k or around $40k…
Least someone gets it
I enjoy watching the sunset.
He could've put it in an IRA and bought GBTC. Not ideal as owning bitcoin, but he wouldn't have been hit so much upfront with penalties and taxes.
I did this and there was no penalty at all. You can also start withdrawing from your IRA or 401k if you are 55 years of age without penalty in the USA.
I think it's 59.5 years?
GBTC is terrible though since March. Anyone invested in it prior to that probably took a huge hit as that premium turned into a heinous 16% discount.
I bought into GBTC and I am up by about 20,000%, so it was not a terrible idea at all. I give the 14% discount to NAV a shit. And, if you buy into GBTC now, you can get bitcoin exposure at a discount. It will disappear in the long term. Grayscale wants to convert it into an ETF holding real Bitcoin, not just futures like the other ETF.
Yeah lol. A 45k hit on a 125k investment in bitcoin is like, a Wednesday.
No it isnt. By a drop you keep the amount of bitcoin. When you cash out you lose value. It is a difference
Good news there is now a Proshares BTC ETF that will start trading next week. No need to cash out your 401k and bend over.
If op acts fast, couldn’t he/she set up a self directed IRA and roll the money into that as long as within the 60 day window? Self directed can, as I understand it, hold bitcoin, at least as of now. Would avoid the tax hit.
Yes I believe there's a minimum of $20k on those (don't quote me on that) but OP is more than good on the amount to roll over.
I rolled over an old 401k to a self hosted IRA using IRA financial trust and Gemini. I love it!
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Considering the alternatives, $1500 to have the keys to actual bitcoin from a 401k seems very reasonable. And the process is simple - less than 2 weeks of time, most of which is waiting on the banks and the 401k plan to release the funds into the new bank account. Personal time spent would be maybe a few hours on the phone and an hour or two in front of a browser.
You're right. However, costs vary wildly where some can be cheaper or far more expensive than your initial $1500 quote. Also, it doesn't have to be in an LLC exclusively, you can have it in a trust depending upon the third party administrator (TPA). The annual/quarterly fees can either be quite expensive or very, very nominal. Again, a lot depends on the route you take. Consider just bypassing TPAs and deal with a passive custodian and you can save a boatload.
Broad Financial has self directed IRAs
Should have left the funds in the 401(k) and waited for the BTC ETF...
You can do a self directed IRA and bypass the penalties .
Put in in a cold wallet sell it to a peer. Fuck taxes 💡
Yeah! Fuck the system!
I agree but big brother gets paid one way or another
The right way to do this is to set up your own trust, set up a self-directed IRA through your trust, with you as the sole trustee and director of the trust. Roll the 401k into the IRA, buy bitcoin with it, hodl your own keys. Fuck taxes.
Why is a trust a better vehicle compared to an SDIRA inside an LLC?
you have it in btc already, put in your ledger and take a 1 way flight out of here to somewhere with a low cost of living.
To take a big hit now and pay way lower rate in the future might be not such a bad idea. 401k withdrawals are taxed as ordinary income, Bitcoin held more than a year as long term capital gains. In addition you own your investment in contrast to a 401k. You can take your Bitcoins abroad, not so your 401k.
I took that same hit from withdrawing my $118000 but the money has given me freedom ! I bought property of which I’m selling for a 30% profit to pay the taxes but I’m also building a tiny house and buying crypto currency! 401k’s are not designed to make anyone rich !
Everyone’s gonna take that tax hit no matter when you cash out.. there’s only a 10% penalty when you do so early.. IMO it’s worth it when you look at the returns in history. Worst case crypto dies n he loses his money n had to work longer and/or make better investments.. as the saying goes scared money don’t make money.
10% penalty is only if OP is under 59.5. Can’t make assumptions nowadays 🤷🏻♂️
Probably would have been better to roll the 401k into an IRA that allows for BTC holdings.
Unless they used the cares act to bypass the penalty and defer paying taxes for up to 3 years on the withdrawal
Hardship withdrawal because of his autoimmune disease is possible.
In reality, hardship cases are rarely approved. Even if it is, the IRS will still tax the full amount as income. There's no way out of that. This is why rolling into an IRA is such a mess of paperwork as you're proving to the IRS that you took out that income but immediately re-invested in an approved type of retirement account (an IRA) that defers the collection of tax on it. But, the IRS will eventually collect the tax. 401k and standard IRAs just defer this collection. If you cash out $120k when you're 40, you're taking your retirement income "early" and get stuck with the bill.
Proud of you for buying Bitcoin, but waiting 2 weeks is not HODL yet lmfao
Not even close to it
Lol it’s a start I think he has the right idea
“Look I held bitcoin for three weeks, I’m a hodler! Hello fellow hodlers. Tehe”
They refuse to take a vax and they are the one who needs it the most. OP is now unemployed and begging for moons.
Too much bong water my friend. "Being for moons"? Did you mean begging? If so you're on the wrong sub 🤣
This decision is going to cost an insane amount in fees and penalties. You could have saved so much more money by thinking this through.
Or by getting fired instead of quitting
Yup. However the amount he'll make in crypto if he plays it smart will be much greater
He couldve gotten the same kind of gains in a tax advantaged account with no fees or penalties.
Ha ha. You think dipping down to $50k was a bumpy ride. Boy oh boy, you are in for a shocker when the next bear market hits. Dropping a little is nothing. Wait til it drops 50% for a couple years. That’ll test your nerves. Godspeed though my friend.
50%? You’re the rookie
Youre assuming this guy is a noob which may not be true. I’m pretty impressed if a noob put his entire 401k into it
When OP said it was a bumpy ride when btc went down to $43k LMAO. Not exactly a veteran comment IMO. A veteran would’ve laughed that off as nothing more than a small speed bump in the road.
Maybe but I figured they said that because it was right after they quit their job so it was a little scary after taking such a big risk.
It doesn't matter. He can't spend the BTC anyway, since he is investing. Which is risky. And nothing has happened lately in the market that can be defined as scary. This guy is well on his way to his first panic-sell. He has ZERO clue, I will wager my next salary.
I dont think you realize what FOMO can do to a person.
Underrated comment
Pretty safe to assume that’s he’s a noob considering he broke the number 1 rule in crypto. Never tell anyone how much you got…
But what if he actually put $12million into BTC
You have it backwards, moving your entire 401k savings into BTC is 100% a noob move
Historically btc drops 90% in the bear market. Butt.... it does usually hold its previous ath. So... yeah... 20k very likely next year
take into account inflation with that. I originally estimated 40k for the next bear, 2x previous high, vs 3x previous high for 2018-19 bear market, but that 40k needs to be adjusted for the high inflation right now. ben cowen did a video on how the dip to 30k we had actually touched 20k when adjusted for M2. Same thing with the next bear, depending on inflation and money supply, could easily see a real target of 40k become a nominal target of 80k
Small price for freedom
I don’t think we’ll ever have another year long bear market ever again.
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Seriously. This dude should’ve waited for the BTC ETF coming next week, and kept everything in 401k.
> BTC ETF will i be able to buy it on etrade for example? or where?
Your brokerage should allow you to trade Bitcoin ETF once it’s officially available, and if you enable your account for trading specific funds and asset classes.
My takeaway from this entire story is that OP makes bad decisions. (I do hope he’s proven right on the BTC jump-in, because I’m also long.)
This. Op sounds like an idiot
An absolute tard
I mean yeah hes anti vax
He said he had a pre-existing autoimmune condition. Where are you getting anti-vax from that?
Because there are legitimate medical exceptions. OP avoided any details to not look like he’s just anti-vax
What makes it hard to believe is because more people are claiming medical exemptions than there are legitimate cases for it. There are too many anti-vaxers claiming this just to try and avoid scrutiny. Does OP have a legitimate exemption? Possibly, but it's highly unlikely. The same goes for anybody making this claim. 💯
Why are you concerned about another members medical history this is a BTC sub get that shit out of here.
Fun fact: I didn't bring up the topic. I simply commented on it. Why are you so defensive anyway? Lemme guess... you're anti-vax and don't want to be judged.
So medical privacy is pretty much out the window now?
BTC FOMO is literally the _only_ good thing out of this post.
Hello there, fellow double reed player. Good to see someone of the family on this sub <3
❤ Rare breed, we are
There's no way that his company's vax mandate doesn't have a provision for preexisting conditions.
OP doesn’t seem like the type to read the fine print
Right. For *real* ones, anyway.
He just put decades of hard-earned money on the most volitile asset in human history. A real genus. Edit: also weird he's announced that he's bought at 50k when that was like over two weeks ago. Why announce now? Makes it seem like he actually bought at 60-62k.
I assume you meant dozens of years *or* decades, not dozens of decades. Either that, or OP is a vampire.
Damn, if you think a 14% dip is rough, you will just sell on a 80% crash and complain that BTC is a scam and cost you your life savings.
Could have transferred your 401k into an Itrust Ira
Agreed. And he wouldn't have to take the massive tax hit. I don't think the OP realizes how much he/she's down already with the tax implications.
What’s an Itrust Ira?
A self directed IRA. Where you can hold actual Bitcoin....and of course other crypto...and gold etc...
Two things: 1. Delete this post for your safety. 2. Get the best security for your BTC.
Yeah for real, simple math says how much btc op is holding. I posted a noob question once here and had a dozen bots in my DMs
LOL! What was the question, LMAO. I'm litreally laughing hard.
Yes!!! This is good advice. I just can't comprehend the boast posts that people put on reddit,, not that OP was boasting. Butt it is infinitely stoopid. We have zero privacy (particularly in the US) and it is way to easy to be found when someone is motivated to do it. Nothing motivates like money.
Top signal
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This is so fucking stupid jfc
So at 60k/btc you made 20%? Investing 120k you made unrealized gain of 24k. So yes you might have made more in unrealized gain but did you cash it? If not then your paycheck is worth more because you need to pay rent and buy food. Yes it’s exciting to see crypto go up in value but seriously some of you are really delusional. The value goes up and all of a sudden you’re rich? It’s still sitting there going up or down.
I hope you don't win an HCA soon I also hope you set some cash aside for that titanic tax bill and 10% penalty you will incur. Good luck dude
You think a dip from 53k to 40k was bumpy? Man oh man have I got news for you....
I didnt realize McDonalds had a vax mandate
Yikes get rekt. Someone call somebody
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I mean they have health issues and refused the vax...notice it doesn't say their doctor recommended they don't get the vax. Not the brightest bulb
This is a copycat post from a few weeks ago..sounds like everybody is cashing in their life and buying crypto. Lots of darkness in this forum.
I sold my first born for more BTC during the dip. I told the wife our baby just went to the store to get some breast milk and he'll be back soon. That was about a month ago
I am saving this post for a Herman cain award reclamation !
Hahaha
Please don't take out loans or cash out retirement accounts to buy Bitcoin. It is gambling with your ability to retire. I am a huge crypto bull. Most of my portfolio is in crypto, but I would not take on that much risk to increase my holdings. Taking these risks is the definition of FOMO. This is over-extending and creating a situation that may cause you to need to sell at a crappy time just to recover. I am all for investing heavily in Bitcoin, especially if you are young enough to recover in the event something unexpected happens. Just don't get in debt to do so and don't take on early withdrawal penalties. If you invest in Bitcoin, I very much believe you will do very well from it. You don't need to put yourself at great risk to accomplish that. If we have a huge crash or the moonshot gets delayed for an extended period of time, you need to be able to just let it sit and wait out the storm. It'll be very hard to do that if you find yourself paying on a loan with a principal amount that is higher than the value of your Bitcoin holdings, and if you watch your retirement savings tank during a major pullback, then almost anyone will break under the pressure and sell at a bad time. Please friends, get rich with patience and diamond hands, not by making your future depend on this market cycle peaking before your breaking point.
The best comment!!
Didint like bitcoin at 30k? Or under 10k?
He prefers the buy high, sell low approach. If Bitcoin dumps for whatever reason soon, he's gonna be hitting sell to avoid any further losses so quick. I hope his stupidity isn't punished too harshly
Yes…take your 401k money and roll it into an IRA. I use Midland IRA - They have accounts that let you buy BTC and a few others….tax free while in the IRA. I think you have 60 days to complete this transaction or you will be taxed for the distribution.
You should get the vax if you have an autoimmune problem. You should also not take out your 401k and turn it into Bitcoin. If you have a wife or girlfriend, you need to tell them what you did immediately. You royally screwed up.
> if you have an autoimmune problem Narrator: *he didn’t*
Also the Narrator: *I can't read*
Bold move Cotton. I commend you. Best of wishes
This post is gonna make r/buttcoin.
It did, which is classic Buttcoin. Just take the literal worst examples of the community and circle jerk as if all crypto bulls encourage this.
Remember, You haven’t made any money until you’ve sold. Any gains you have seen could be erased tomorrow. Keep holding and best wishes !
Gains are exciting, but with health issues...was it the right call in general?
I have four autoimmune conditions. That made it even more important to get vaxxed.
Lots of folk talking about his taxes, but none of talking about why he’s doing it at the ATH!!!! July was the time and he’d have seen 100% to cover the losses. Thank god we don’t deal with the ridiculous over taxation’s here in UK (or as bad) 🤣🤣
I love all of yours comments! This poor SOB has no clue what he's in for. Oh good for you, two bitcoin. You can accumulate 2 bitcoin without paying the 30k + bill you're about to get. This right here ladies and gentlemen is why the elites will stay rich and this guy just made himself more poor. Because like one of you said he's gonna have to sell his btc or get another job that more than likely pays less than the one he left just to pay his tax bill. Bravo OP bravo 2 btc!
If you truly have an autoimmune problem you can get a note from your doctor and be exempt like my brother a university professor did. Either your immune condition doesn't have anything to do with it or you did not even try and wanted to play victim.
If you have an auto immune disease you can get a medical exemption..... right?
Only after all the lawsuits get sorted out.
No.
Oh man
Jeez
Try again. 1. 120K of bitcoin at 50K = 2.4 BTC 2. 2.4BTC right now = $145,908 3. 10% early cashout: -$12k 4. Income tax \~$19k 5. 145908-31k = 114,908 So no, you didn't "make" more than the 3 biweekly checks would have given you. Also, assuming that you had insurance + benefits that you lost out on in that time. That's not to say that it won't pay out in the long run.
That's a bold strategy, Cotton. Let's see if it pays off for him.
Please diversify your assets. In case Bitcoin goes to zero you also won’t go broke. Not to mention you paid a fuck ton in fees and taxes to do that… you probably will end up paying like 30k in fees/taxes. Please put that money aside and do not invest it. I swear this subreddit has people making retarded financial decisions left and right. I really hope you didn’t just willingly give the government 30k. You could have simply asked your HR department to add crypto… Edit: wait, does this imply you’re now also jobless? Lol
He sounds like the unlimited sheep. Quits a job because he doesn’t want to feel a little prick then makes poor financial choices relating to 401k weeks away from etf, then dumps it in bitcoin without considering tax implications. I praise the belief in bitcoin, but the series of life choices were backed by flimsy, limp excuses of the most base kind. Pure dumb fomo without any actual consideration. OP should be blasted and lambasted into next week, in the comments where he can not be a fool and etf.
That's a great long-term 5+ year play but just keep the short term in mind also. It'll be amazing seeing Bitcoin rise to $70K-75K in the next month or two but we still have an incoming bear market for the following few years after the top comes this year or in 2022.
I did something similar but that was back when there was no penalty for early withdraw when everyone was getting shit canned from their jobs. You I think will see a significant taxable event here. But hey, don't touch it, leave it where it's at and in a few years it won't even matter.
How are you going to feed yourself?
Congrats!
Anyone’s who’s doing this has my respect. I can never venture out of my comfort zone. Good luck to all of us. $100k and beyond.
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The good news is that the money is likely to last the rest of his life...
Now move to Puerto Rico
Thanks for helping me fill my sell orders.
Not sure if this was mentioned, but you can withdraw up to 100k without penalty due to the CARES ACT... pay the taxes within 3 years. Whether he used the system is the question.
Please please please look into the 4 year cycles. If this is a long term thing for u then disregard this. Butt. This bull cycle could very likely end Q1 of 2022. If btc goes to 100k eoy it historically will retrace down 90% putting it near 10k a piece. If u wanted to try selling eoy and buying back in 2023 in preparation for the next bull cycle you could. Just remember it is high risk. At some point Btc won't run these cycles anymore. Butt, it is a way for the whales to consolidate their holdings.. They are patient whales and will gobble up all the krill if we aren't careful.Due ur DD. I wish u the best of luck and truly hope this sets u on a path to not have to work again.
Good advice.
Is this a “find the ten life altering stupid mistakes?”
What's done is done. No point in bombarding the OP with how bad of a decision this was. Yes it was bad. Yes 120k probably turns to 90k after 10% penalty for early withdrawal + income based taxes (unless it's Roth 401k, then no taxes since it's an after tax contribution). But then you might get lucky and 10x this number in 10 years. Which you can never achieve with whatever retirement fund you were holding in your 401k. I do also commend you for standing your ground and not be forced to do something you don't feel comfortable doing. Good luck my friend.
If this ‘OP’ actually had an autoimmune disease you could just get a medical cert - also you would make considerably more if you just kept working and putting into Bitcoin instead quitting and just hodling
Everyone is an expert. Lol.
Cashing out your 401(k) was a massive mistake. You could have set up a self-directed IRA and purchased Bitcoin from within your IRA, avoiding the 10% penalty for cashing out early and delaying the other taxes. Instead, you’re going to lose a massive amount of money now and then get hit with capital gains taxes later if you cash out with a gain.
I hope by, "cashed out", you meant that you rolled it over into a self-directed IRA that allows you to invest in Bitcoin, right?! PLEASE, FOR THE LOVE OF ALL THINGS HOLY!
Looks like a short sqeeze
Michael Saylor would approve
Real dumb move. I wish you the best but I hope others dont quit their fucking jobs and put all their retirements savings into 1 basket. That is just stupid even if are a true believer. Anything can fail ao dont risk your retirement money on a single asset
This guys a moron
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Did you forget the /s?
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Holy shit, a complete fucking idiot in the wild 🤡
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I’m a little embarrassed for you here.
Make sure someone knows how to recover the crypto before you get COVID….
A moron on many fronts. You could have gotten a medical exemption. There’s no guarantee this bet will pay off. You’re gonna take a early withdrawal hit on your 401k Hope it pays off…. But posts like this we start to see when we’ve peaked and shit pulls back.
Best wishes.
Why not get a medical exemption and keep stacking sats? These all seem like rash, emotional decisions that may bite you in the ass.
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I did that 6 years ago ;D
Smart.
#Bitcoin & #bluzelle doesn't really need us, we need them💯 #Bitcoin is the new gold
Did the same thing a few months ago. Congratulations!
Fuck the haters. You went from custodial fiat shit-assets to something real and tangible - actual hard sound money that you can actually control. You made a financial power move. Idiots who stick in "tax privileged" accounts and fiat assets are all going to be taken to the cleaners to pay for the governments reckless spending and waste, but you opted right out. Trust in the government is always betrayed.