Crypto IRA vs Crypto Solo 401k – Top 8 Reasons Why Crypto Solo 401k is the Best Retirement Account Option for Investing in Cryptocurrency/Bitcoin

With the recent Super Bowl being dubbed the Crypto Bowl after Coinbase, FTX.us, and Crypto.com poured millions of dollars into advertising for the big game, 2022 may be viewed as the year in which investing in Bitcoin and other cryptocurrencies became mainstream. 

For the everyday investors who are interested in investing in bitcoin or other cryptocurrencies (and likely hold the vast majority of their financial investments in retirement accounts), they may look to make such crypto investments via a retirement account. 

While a number of new Crypto IRA providers have opened up shop in the last year or so to fill this demand, a Crypto Solo 401k has several important advantages over a Crypto IRA including security, fees, investments options, etc. which make a Crypto Solo 401k the best retirement vehicle for investing in cryptocurrency.

# 1 Advantage of Crypto Solo 401k vs Crypto IRA – Security

• Per IRA Rules, IRA Provider holds or has access to your Crypto IRA

• With a solo 401k, the Crypto Solo 401k provider has no access to your crypto which is stored at Exchange/Cold Storage/Wallet of your choice

# 2 Advantage of Crypto Solo 401k vs Crypto IRA – Fees

• Crypto IRA Providers typically charge 1-2% trading fees

• Crypto Solo 401k provider charges NO trading fees – only pay trading fees charged by crypto exchange of your choice (typically 0.4% or less)

# 3 Advantage of Crypto Solo 401k vs Crypto IRA – Choose Your Own Exchange

• Crypto IRA providers typically offer only one designated platform or exchange

• With Crypto Solo 401k, access to many different exchanges including DeFi

# 4 Advantage of Crypto Solo 401k vs Crypto IRA – Access to More Coins

• Crypto IRA providers offer a limited selection of cryptocurrencies

• With Crypto Solo 401k, invest through multiple exchanges which provides access to many different coins

# 5 Advantage of Crypto Solo 401k vs Crypto IRA – Store Keys in Private Wallet

• Per IRA rules, crypto held in Crypto IRA must be stored with a custodian

• With a Crypto Solo 401k, crypto may be stored at the Exchange/Cold Storage/Wallet of Your Choice

# 6 Advantage of Crypto Solo 401k vs Crypto IRA – More Tax Deductions

• For 2022, max IRA contribution is $6,000 (or $7,000 if age 50 or older)

• With a Crypto Solo 401k, you may contribute as much as $61,000 (or $67,500 if age 50 or older) for 2022

# 7 Advantage of Crypto Solo 401k vs Crypto IRA – Mega Backdoor Roth

• For 2022, max Roth IRA contribution is $6,000 (or $7,000 if age 50 or older)

• With a Crypto Solo 401k, you may contribute as much as $61,000 (or $67,500 if age 50 or older) for 2022 as a Mega Backdoor Roth contribution

# 8 Advantage of Crypto Solo 401k vs Crypto IRA – Alternative Investments

 • Many Crypto IRA providers only offer the ability to invest in certain cryptocurrencies

• With a Crypto Solo 401k, you may also invest in real estate, private placements, precious metals, notes among many other options

Continue the discussion in our My Community where our Owners host a daily LIVE webinar where you can ask questions and you can post questions in our forums: Cryptocurrency Forum

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About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>

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