Converting Between IRA Wrappers With Crypto Assets

One of the less obvious but important aspects of crypto retirement planning is custody. How your assets are held, secured, and reported depends not just on the custodian but also on the IRA wrapper you select. Choosing the wrong structure could complicate custody and increase costs.

Custody in the crypto world goes beyond brokerage accounts. Keys, wallets, cold storage, and regulatory requirements all matter. Some wrappers, like Roth IRAs that involve digital assets, often trigger closer scrutiny. Custodians supporting them may require more robust auditing and reporting, adding to the administrative burden. By contrast, Traditional IRA wrappers may sometimes offer simpler processes, but they expose you to higher taxes down the line.

Self-directed IRA wrappers give investors the freedom to diversify but also demand that custodians implement advanced custody solutions such as multi-signature wallets or independent audit attestations. Not every custodian is equipped for this, meaning wrapper choice can determine whether your investment is even feasible.

The article Choosing the Right IRA Wrapper for Digital Assets provides detailed insights into how custody practices vary by wrapper. It explains which structures attract stronger custodian support and which ones might limit your options.

If you plan to invest long-term, having reliable custody aligned with your wrapper is essential. You don’t want to be forced into liquidations, nor do you want to expose your assets to unnecessary risks. Review the guidance in “Choosing the Right IRA Wrapper for Digital Assets” to ensure your structure and custodian work hand-in-hand.