Thinking of Investing in Crypto Currency with Your Solo 401k or Checkbook IRA?

by Peter Rizzo

Life Settlements in a Retirement Account? Think Again.

To get started in crypto, you must open the exchange/crypto account in the name of the LLC. You cannot use a previously set up crypto account for the LLC. Popular crypto choices are Kraken, Gemini, CoinMe, CoinBase, Bitstamp, etc.

Please do your own due diligence when selecting a crypto exchange. I’ll warn you right now most of these platforms are extremely automated and opening accounts can be very frustrating. Here are a few things that can help cut through the hassle.

If keys to the LLC’s crypto are held in an offline wallet, we suggest the wallet should be held in a safe deposit box of a bank that is connected to the bank account of the LLC or the Solo 401K.

Regardless of where you set up your Crypto Account, we recommend having the following on file to help meet your documentation requirements.

1) Bank Letter for Business Proof of Residence – Once you have set up your LLC checking account, ask your bank to draft a letter stating that the LLC or Solo 401 (k) has a checking account with them. The Bank Letter should include Bank Logo, LLC or Solo 401 (k) Name, Address/Should Match LLC or Solo 401 (k) Address on Filings, Manager Name, Current Date.

2) Custodian Letter for LLC Structure Confirmation – Crypto companies may ask for a Certificate of Trust or some proof of the ownership structure of the Check Book IRA. They are using the wrong terminology and should refer to the Operating Agreement. However, to speed things along, ask your Custodian to draft a Letter stating that they custody an IRA on your behalf and that the IRA owns 100% of an asset, the LLC (make sure to have them spell out the LLC’s name). The Custodian Letter should include Custodian Logo, Your IRA Name/Title, LLC Name, Current Date.

3) If a Solo 401 (k), have the determination letter and the Adoption Agreement ready to upload. There is no custodian and the adoption agreement spells out the specifics of the plan.

For any tax reporting, use this W9 Sample to complete the needed forms:

Again, please do your own due diligence.


Contact Us

    Name *

    Email *

    Phone *

    How can we help? *