Key Points 

• A Crypto Solo 401(k) is a self-directed retirement account designed for self-employed individuals to invest in not only traditional investments, but also in alternative assets such as cryptocurrencies.
• Using a Self-Directed Solo 401(k) as a Crypto Solo 401(k) offers tax advantages, checkbook control, retirement portfolio diversification, and investment flexibility.
• Setting up a Crypto Solo 401(k) with Broad Financial is easy and transparent, with a one-time setup cost of $995 and an annual maintenance fee of $149.

Nearly a quarter of American adults own or have owned cryptocurrency, and the number may be rising. Many are investing with cash, but some are using retirement funds to tap into tax advantages. Broad Financial's Crypto Solo 401(k) is designed for self-employed entrepreneurs with no full-time W-2 employees other than perhaps a spouse. You can use a Crypto Solo 401(k) to invest in the cryptocurrencies that interest you. Here's what you need to know:

What Is a Crypto Solo 401(k)?

A Crypto Solo 401(k) is a Self-Directed Solo 401(k) for self-employed individuals who have no W-2 employees and want to diversify their retirement investing with cryptocurrency. If your spouse is the only other employee in your business, you can still qualify for a Solo 401(k). The self-directed aspect of our account allows you to invest in cryptocurrencies as well as other alternative assets such as real estate and private placements. In this way, it’s similar to a Self-Directed IRA. By contrast, a standard Solo 401(k) is typically limited to investments in stocks, bonds, and mutual funds.

Benefits of Investing with a Crypto Solo 401(k)

Tax-Deferred or Tax-Free Gains

Unlike investing directly with personal funds, using a retirement account to buy crypto can lead to tax savings. Any potential gains made from your investments will grow tax-deferred if you set up a Traditional Solo 401(k) or tax-free if you choose a Roth Solo 401(k). You can also choose to open a Crypto Solo 401(k) as both Traditional and Roth.

Checkbook Control

The Crypto Solo 401(k) from Broad Financial comes with checkbook control, allowing you to place investments directly from your Solo 401(k) trust account in real time. You're free to execute trades on the spot.

Retirement Portfolio Diversification

Investing in cryptocurrencies can be a strategy to diversify your retirement portfolio. Your Crypto Solo 401(k) can also invest in real estate, private placements, and more.

Greater Flexibility

With Broad Financial's Crypto Solo 401(k), you can allocate almost 10 times as much of your retirement savings to crypto than with an SDIRA. You can tailor your investments to your personal risk tolerance.

Comprehensive Support

Our specialists can help you set up your account and answer any questions. We also provide a digital binder containing guides and necessary documents to simplify managing your Crypto Solo 401(k).

How to Set Up a Crypto Solo 401(k) With Broad Financial

When you're ready to open your account, these are the steps you'll follow:

1. First, you’ll complete Broad Financial’s easy online application. Our team will then establish your Self-Directed Crypto Solo 401(k) plan.
2. Next, we'll create a trust and designate you as the trustee. We then compile your digital binder for your plan.
3. Once you receive your Broad Financial digital binder, you'll open a checking account for your trust.
4. When the checking account is ready, you can then add funds by transferring or rolling over existing retirement money from an IRA, 401(k), or other eligible plan.
5. You're then ready to invest! Simply move funds from your dedicated checking account to your desired crypto exchange account.

How Much Can I Contribute to My Crypto Solo 401(k)?

As of 2024, the annual contribution limit set by the IRS is $76,500 a year if you're 50 or older, or $69,000 if you’re under 50.

Can I Get a Loan from My Crypto Solo 401(k)?

Yes! You can borrow up to $50,000 from your Crypto Solo 401(k). Taking out a loan is a simple two-step process. First, you’ll fill out the two loan forms, PL-18 and PN-19, found in the back of your digital binder. Then, you can write a check from the Solo 401(k) to yourself. Because you are the designated plan administrator, you don’t need to send or file forms with anyone else. You can keep the forms for your records and reference them as needed.

What Are the Costs?

At Broad Financial, we believe in transparency and have no hidden fees. Our Crypto Solo 401(k) has a $995 setup cost and an annual $149 maintenance fee.

Get the Answers to All Your Questions

Ready to start investing in crypto with your retirement funds? Have additional questions? Schedule a discovery call today to speak with one of our specialists. We’re here to equip you with the information you need to go forward on your retirement investing journey.