Every day we’re asked how to invest Solo 401k and IRA funds in crypto. Fortunately, each year the process is easier than before. We’ve been teaching clients to invest in crypto with Solo 401k funds since 2013. And, as fellow crypto investors ourselves, we’re very familiar with the process!
Today we’re going to show you how you can invest in crypto with your Solo 401k. There are 3 major crypto platforms that are friendly towards institutional accounts, which means you can open an account for your Solo 401k with each.
Each exchange platform has its own unique upsides and downsides, so make sure to do your research when choosing which one (or all of them) to use when opening a crypto exchange account with your Solo 401k.
Need help opening exchange accounts?
Review this guide on best practices to open a Coinbase Prime account for your Solo 401k Trust. Coinbase Prime is very user-friendly and account opening process is straightforward. Plus, you can buy stablecoins and trade on the platform.
Review this video on best practices to open a Kraken account for your Solo 401k Trust. Kraken is also friendly to corporate/institutional accounts to buy and hold crypto. There are also many trading pairs so you have lots of flexibility in what assets you buy.
Once you’ve opened an account for your Solo 401k using the information provided here, it’s a simple matter of transferring funds from your Solo 401k bank or brokerage account over to your new crypto account. Once the funds have cleared, start purchasing crypto!
Not sure what cryptos to start with? Check out this article on 10 Crypto coins to add to consider adding to your Solo 401k.
Please note: We have made our best efforts to provide you the most up to date best practices here, but please check with each exchange to ensure you have the right application to open a corporate account for your 401k trust. The best practices included in each instructional video/guide are specific to Nabers Group Solo 401k documents. If you have a different document sponsor, your documents may vary slightly.
When I’m setting up a Trust account with a crypto currency entity, what does it mean when asked “anticipated funding patterns” (e.g., deposit bitcoin, withdrawal USD)?
Hi Tammy, typically the exchange platform is looking for the number of transactions, withdrawals, and purchases to expect from your account. Give your best estimate how much you plan to deposit and withdraw – usually on a monthly basis.