Self-Directed IRA Investments
Self-Directed Crypto IRA
Hold Bitcoin, Ethereum, and more than a hundred other digital assets inside your IRA. Buy and sell from your dashboard. Custody handled for you.
Digital assets in your IRA
Crypto held for retirement, not for spending.
A self-directed crypto IRA holds Bitcoin, Ethereum, and other digital tokens in place of stocks and mutual funds. The coins belong to the IRA, not to you personally. A regulated custodian holds the keys, the wallet, and the audit trail.
Inside the IRA, price movement is not taxed each year. In a Traditional IRA, gains are taxed only when you take distributions in retirement. In a Roth IRA, qualified distributions come out tax-free.
Crypto carries real risk. Prices swing hard, and the asset class is younger than every other one in your portfolio. The next sections walk through the rules that keep your account compliant, then the steps to open and fund.
For live market context, charts, and educational articles, visit the Crypto IRA Resource Center.
How it works
How your crypto IRA holds assets and handles taxes.
A crypto IRA follows the same self-directed IRA rules as every other asset class, plus a few practical constraints that come from how digital assets are held. The sections below cover custody and tax treatment.
A few terms we'll use
- Cryptocurrency
- A digital asset secured by cryptography and recorded on a blockchain. The IRS treats it as property, not currency, under Notice 2014-21.
- Private key
- The cryptographic password that controls the coins in a wallet. Whoever holds the key controls the coins. For an IRA, the custodian holds the key, never the account owner.
- Institutional custody
- A regulated custodian holds the keys and the wallet on behalf of the IRA. The coins stay with the custodian in institutional-grade storage, not on a personal phone or laptop.
- Disqualified person
- You, your spouse, your parents and grandparents and up, your kids and grandkids and down, and any of their spouses. Plus any business those people control 50% or more of. The IRA cannot transact with any of them. More on disqualified persons.
- Distribution
- Money or assets leaving the IRA. In a Traditional crypto IRA, the dollar value of what comes out is taxable income that year. Roth distributions can come out tax-free when qualified.
- Required minimum distribution (RMD)
- A yearly amount Traditional, SEP, and SIMPLE IRA owners must withdraw starting at age 73, rising to age 75 in 2033 under SECURE 2.0. Roth IRAs have no RMDs for the original owner.
How a crypto IRA holds your assets
The IRA owns the coins. A regulated custodian holds the keys. You direct the buys and sells from your dashboard.
Title held by the custodian
American Estate & Trust takes title to the coins in the name of your IRA. You direct the activity. The custodian holds the asset.
Keys held by institutional custody
A regulated institutional crypto custodian holds the private keys and the wallet on behalf of AET. The coins stay in institutional custody, not on a personal device or exchange account.
You do not hold the keys
IRA-owned coins cannot live in a personal wallet, a hardware wallet you control, or an exchange account in your name. Personal control of the keys is treated as a distribution of the full value.
Trading from your dashboard
Buy and sell orders run inside your Accuplan dashboard. Trades settle in under a minute. No third-party trading account on another platform.
The IRS treats cryptocurrency as property for tax purposes. See IRS Notice 2014-21.
IRA rules apply
The same disqualified-person and prohibited-transaction rules that cover every self-directed IRA apply to crypto. The IRA buys at arms length from the institutional exchange. It cannot transact with you, your family, or businesses you control.
No self-dealing
The IRA cannot buy your personal wallet or sell coins back to you.
No personal custody
IRA-owned coins must stay with the custodian. Taking personal control of the keys is treated as a full distribution.
When the IRA owes tax
Crypto held inside an IRA does not generate ordinary income. Tax shows up in only two scenarios.
On distribution
Taxable when funds come out
In a Traditional IRA, the dollar value of the distribution is taxable income in the year you take it, plus a 10% additional tax if you are under 59½. In a Roth IRA, qualified distributions come out tax-free.
On a violation
Penalty path for the IRA owner
Taking personal control of the keys, buying from a disqualified person, or any other prohibited transaction caused by the IRA owner is treated as a full distribution of the entire IRA on January 1 of that year. See penalty details.
Standard crypto investing does not trigger UBIT or UDFI. Capital gains are excluded under IRS UBIT exclusions. Running an active, high-frequency trading business inside the IRA can change the answer. More on UBIT and UDFI.
How to start
Three steps from open to first trade.
Your dashboard runs the account, the trades, and the reporting.
Open
Open your self-directed IRA online in a few minutes. No paperwork to print or mail.
Fund
Move money in by transfer, rollover, or new contribution. Cleared funds are ready to deploy.
Buy or sell
Pick the coins you want right inside your dashboard. Trades settle in under a minute and the custodian takes title in the name of your IRA. No third-party trading account needed.
Need guidance?
Talk to a crypto IRA specialist.
Frequently asked
Crypto IRA FAQs.
Why hold cryptocurrency inside a self-directed IRA?
Crypto held for investment generates capital gains. Inside a Traditional IRA, those gains are not taxed until you take distributions in retirement. Inside a Roth IRA, qualified distributions come out tax-free. Outside an IRA, every sale is a taxable event in the year it happens.
Which cryptocurrencies can my IRA hold?
The IRS has not issued a specific list. Coins are treated as property under IRS Notice 2014-21, so the practical limit is what the custodian and the institutional exchange support. Through your Accuplan dashboard, around 120 coins are available, including Bitcoin, Ethereum, and Litecoin. The full list shows up when you place a trade.
Why can't I hold the keys to my own coins?
Two reasons. First, the IRA owns the coins, not you personally. The custodian holds title and the keys go with title. Second, taking personal control of an IRA-owned asset is treated as a distribution of the full value, plus a 10% additional tax if you are under 59½. The institutional custody arrangement keeps the coins legally inside the IRA and removes the single-point-of-failure risk of a personal wallet.
Who can my IRA buy from, and who is off-limits?
The IRA buys at arms length from the institutional exchange our custodian works with. It cannot buy from a disqualified person under IRS prohibited-transaction rules. That rules out you, your spouse, your lineal ancestors and descendants, their spouses, and any business those people control 50% or more of. Selling your personal wallet to your IRA, or buying coins from a company your parent owns, is a prohibited transaction. Read more on disqualified persons.
What happens if I break the rules?
Two penalty paths apply, depending on who caused the violation. Under IRS rules on IRA disqualification, when the IRA owner causes the violation, the entire IRA is treated as distributed on January 1 of that year. The full balance becomes taxable income, plus a 10% additional tax if you are under 59½. Under IRS excise-tax rules, when another disqualified person is the cause, that person owes a 15% excise tax that grows to 100% if not corrected within the taxable period.
Does the IRA owe tax on price appreciation?
Generally no. Coins held for investment generate capital gains, which are excluded from unrelated business income under IRS UBIT exclusions. UBIT and UDFI do not apply to passively-held crypto. Active high-frequency trading inside the IRA can change the answer, so talk with a tax advisor before running a trading business inside your account. More on UBIT and UDFI.
Is the purchase instantaneous with the current price?
There is a minor delay between the time you place an order and the time it fills. Because of that, the price you trade at can be slightly different from the price you saw when you started the order.
Can I trade 24/7?
Yes. Crypto markets run 24 hours a day, seven days a week, and so does the trading flow inside your dashboard. Trades typically settle in under a minute.
Do I need a separate trading account on another platform?
No. Trading happens inside your Accuplan dashboard. You don't need to open or fund a third-party account on another crypto-buying platform. The wallet, the custody, and the reporting all run through the IRA.
What are the fees?
Two crypto-specific fees apply on top of the standard IRA administration fees. A 1% transaction fee on each trade, and a 0.05% monthly storage fee on the value of coins held. See current fees or contact us for a quote on your situation.
How do I place a trade?
From inside your Accuplan dashboard.
- Login or set up your account.
- Select "Invest (DOI)" on the far left.
- Select "New Investment" on the right.
- Select "Cryptocurrency."
- Agree to the terms.
- Enter the dollar amount you want to trade.
- Pick the coin.
- Place the buy order.
Can I move my crypto to another platform?
Not in coin form. The IRA holds the coins, not you, and you cannot move IRA-owned assets to a personal wallet. To exit a position, place a sell order, settle to U.S. dollars inside the IRA, and either reinvest the dollars or take a cash distribution under the normal IRA rules.
Can I take physical possession of the coins in retirement?
No. Unlike a precious metals IRA where an in-kind distribution ships physical bars, a crypto IRA distributes only in cash. The coins sell inside the IRA, and the dollar proceeds are distributed. The dollar value is reported as taxable income from a Traditional IRA, or comes out tax-free from a qualified Roth distribution.
Are crypto IRAs subject to required minimum distributions?
Traditional, SEP, and SIMPLE crypto IRAs follow the standard RMD rules starting at age 73, rising to 75 in 2033 under SECURE 2.0. Roth crypto IRAs have no lifetime RMDs for the original owner. IRS, RMD FAQs.
How is the value of my crypto reported each year?
Accuplan, as administrator, collects the year-end valuation from the institutional custodian. American Estate & Trust, as custodian, reports the fair market value to the IRS on Form 5498. You do not file the form yourself.
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