How to roll an old retirement plan into a crypto IRA
You can move an old workplace retirement plan into a crypto IRA through a self-directed custodian. A direct transfer avoids taxes and penalties.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
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The IRS treats cryptocurrency as property, so retirement account tax rules apply. A crypto IRA is an ordinary IRA that holds digital assets, and your old plan has a say in the transfer.
Can you roll retirement savings into crypto?
You can do this through a self-directed IRA, as long as its custodian permits crypto. A self-directed IRA may hold assets an ordinary custodian turns down.
What to know before you start
A direct trustee-to-trustee rollover avoids taxes and early-withdrawal penalties. An indirect rollover can trigger them.
How to complete the rollover step by step
Start with the custodian, because the plan needs a receiving account first.
- 1Open the self-directed IRAApply with a custodian that permits crypto in retirement accounts.
- 2Request a direct rolloverAsk for a trustee-to-trustee transfer, not a check paid to you.
- 3Send the custodian's detailsComplete the plan's forms with the custodian's account details.
- 4Confirm the money arrivedCompare the custodian statement with the amount the plan sent.
- 5Direct the purchaseTell the custodian what to buy, and keep the assets in the account. Do not move IRA coins to a wallet.
What to do after the rollover
Keep the plan's statement, the custodian's confirmation and your account statements. They show the money moved between retirement accounts. Withdrawals from a traditional IRA are generally taxable.
Frequently asked questions
That makes it an indirect rollover. The plan withholds taxes, and you must put the full amount back into the IRA within the IRS time limit.
Usually yes, and often easier than moving a plan at a current job. The plan must allow the transfer and the custodian must accept the assets.
Often a few weeks, because the plan and the custodian each process paperwork. Missing forms are the usual cause of delay.
