How to Acquire Cryptocurrency with Solo 401K

6 Replies

Hi BP,

I am looking to invest in cryptocurrency using my Solo 401K, and registered for an institutional account (via LLC owned by Solo 401K) with a few exchanges. It has been several months since doing so, and my accounts are still pending approval. Are there any alternative ways to acquire cryptocurrencies via a Solo 401K? Sitting on the sideline while the crypto market skyrockets has been very frustrating.


@Brandon H.

Unfortunately, your situation is not unique.  The crypto exchanges are exceedingly busy opening new accounts as fast as they can, and definitely focusing on the low-hanging fruit, which is individuals.  Institutional accounts are slow to setup, and none of the exchanges really provide a means to contact someone to check on the status of an application or obtain help.

You have to establish an institutional exchange account that ties back to the Solo 401(k) in some fashion, either directly in the 401k trust or via a LLC that is wholly owned by the 401(k). There is no other means to properly put the 401(k) plan money to work. You might try an account directly via the 401(k) trust, but that would only work if you also have a direct trust-held bank account. I'm not sure if the LLC helps or hinders in the 401(k) space relative to cryptocurrency, as we typically do not place a LLC inside the 401(k) unless there is a distinct need to segregate plan assets from each other for liability purposes.

My understanding is that Genesis is the best platform for such institutional accounts, but that is just anecdotal.

@Brandon H.

You're definitely not alone. I have been hearing this more and more lately.

Gentlemen, I am researching  this topic of holding Crypto in a Solo 401K, and am wondering where you are in the process after the 3 months since you started this thread.

I have some crypto, but don't have a solo 401K set up yet, so my first question is (presuming I am eligible for the solo 401K) is am I able to transfer my existing crypto into it from my regular individual crypto account or would I have to sell it and then buy my position back with my solo 401K account? 

Thanks for any info.

@Steve Delaney ,

To be eligible for a Solo 401k you must be self-employed or own a small business without full time employees.

You would not be allowed to transfer any assets that you personally own into your Solo 401k. 

Well... if it was bitcoin he was talking about half of his investment has not been lost thanks to the delay.

@Steve Delaney

Good question. You would have to sell it and then repurchase it again as the 401k rules don't yet recognize crypto to be used for contribution purposes like cash. 

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