Harvard Law Attorney George Blower reviews how a Crypto Solo 401k offers access to many cryptocurrency exchanges and the related advantages of a Crypto Solo 401k over a Crypto IRA.
Crypto IRA Requires Third Party Trustee
- IRS Rules require that all IRA accounts be administered by a third-party bank or trust company.
- For the Crypto IRA investor this effectively means that the Crypto IRA provider will have access to your account.
- If the Crypto IRA provider is hacked, this could put your crypto retirement holdings at risk
Business Owner May Serve as Trustee of Crypto Solo 401k
- Per IRS, the trustee of of a 401k plan may include the business owner (i.e. you).
- For the Crypto Solo 401k investor this means that the Crypto Solo 401k provider will NOT have access to your account.
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
Why it is important to have access to many Crypto Exchanges?
With access to many cryptocurrency exchanges, the Crypto Solo 401k can enjoy additional benefits including:
- More Crypto Storage Options
- Lower Trading Fees
- Access to More Coins
- Plus additional benefits generally of a Crypto Solo 401k including Higher Tax Deductions, Higher Roth Contribution Limits & Alternative Investment Options