As crypto becomes more mainstream, integrating it into retirement planning has become a core issue for advisors and investors. A key strategic question emerges: do you tuck crypto into your existing IRA or give it its own home?
To understand that, you need a practical roadmap. That’s provided by “One Account or Two? How a Crypto-Enabled IRA Fits Alongside a Traditional IRA”, which lays out how different IRA types interact with crypto, and when it’s smarter to split your strategy.
The tax implications are central. Traditional IRAs offer upfront deductions, while Roths give tax-free growth later. If you expect crypto to appreciate significantly, placing it inside a Roth (or hybrid) may minimize future tax drag. The guide walks through hypothetical scenarios showing when that tactic pays off.
Also, allocations matter. If crypto forms only 5–10% of your portfolio, keeping it in the same IRA may be elegant. But when crypto becomes a larger weight, isolating it can aid reporting, rebalancing, and disaster recovery. The linked resource discusses how to structure allocation caps, rebalance triggers, and exit rules.
Custodian selection is another inflection point. Some custodians don’t support crypto at all, while others offer robust interfaces, tax reporting, and auditing tools. If your custodian supports both crypto and traditional assets, a unified account may suffice. If not, a separate self-directed crypto IRA might be forced. The linked guide shows what features to ask for.
Behaviorally, many investors benefit from mental accounting. Separating your speculative crypto exposure from your core retirement assets helps reduce emotional interference. The guide covers these behavioral patterns and how to build structure around them.
Finally, compliance is nonnegotiable. Self-directed IRAs bring tight rules: no self-dealing, no personal use, and rigorous documentation. Any strategy of one or two accounts must respect those constraints. The linked article flags key mistakes to avoid.
If you're designing a retirement plan that embraces crypto, you’ll want to reference “One Account or Two? How a Crypto-Enabled IRA Fits Alongside a Traditional IRA” as a foundational guide to structuring your approach.