From Wallet to IRA: How to Move Crypto into Retirement Safely

Introducing crypto into a retirement plan offers sharp upside—and sharp danger. While the tax advantages are alluring, the volatility, regulatory uncertainty, and custody complexity demand caution.

Rewards:

  • Tax shelter — when trading inside an IRA, realized gains don’t trigger immediate taxes. That enhances compounding.

  • Diversification — crypto isn’t tightly correlated with equities, so it may improve risk-adjusted returns.

  • Access to growth — early exposure to digital assets may unlock outsized gains.

Risks:

  • Volatility — crypto can swing 20-30% in a week; if it’s mixed into your core account, that drag may distort your overall strategy.

  • Custodial risk — weak security or faulty transfers can destroy value.

  • Regulatory ambiguity — tax rules and custody guidance remain evolving.

  • Mistakes in compliance — failing to follow prohibited transaction rules or proper valuation may trigger penalties.

Because of these risks, many investors prefer structurally isolating crypto into its own IRA. Others prefer a unified account for simplicity—but only if the custodian is robust. The guide One Account or Two? How a Crypto-Enabled IRA Fits Alongside a Traditional IRA helps you weigh rewards vs. risks in that decision.

Specifically, the guide walks through how much weight to assign to crypto, what thresholds to define for exits, how to protect your core assets if crypto collapses, and when to rebalance. It also includes considerations for custodian selection, reporting complexity, and audit resilience. If you’re evaluating whether to blend or segregate crypto within your retirement architecture, start with “One Account or Two? How a Crypto-Enabled IRA Fits Alongside a Traditional IRA”.