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Creating a Coinbase account for my 401K
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6 Replies
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I am trying to open a Coinbase account so that I can move some of my Roth funds at Fidelity to Coinbase for the purpose of purchasing BTC. I found a tutorial from 2021 on the process but the process is different now at Coinbase and I’m confused by some of the questions. Is it possible to update this tutorial guide?
I selected to create a business account and then selected Non Operating Company for 401K. Afterwards, it ask the purpose of the account (for individual or business)? Then, Entity type? Is that my business entity or the 401K entity? Retirement trust isn’t an option so I don’t know what to put.
If I select that the account is for an individual, I am able to say that the entity type is a Trust and then select a Revocable Trust. Is this what I want?
I called Coinbase and they can’t seem to understand that I’m NOT asking them to set up a 401K for me. They are of no help.
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QUESTION:
I am trying to open a Coinbase account so that I can move some of my Roth funds at Fidelity to Coinbase for the purpose of purchasing BTC. I found a tutorial from 2021 on the process but the process is different now at Coinbase and I’m confused by some of the questions. Is it possible to update this tutorial guide?
I selected to create a business account and then selected Non Operating Company for 401K. Afterwards, it ask the purpose of the account (for individual or business)? Then, Entity type? Is that my business entity or the 401K entity? Retirement trust isn’t an option so I don’t know what to put.
If I select that the account is for an individual, I am able to say that the entity type is a Trust and then select a Revocable Trust. Is this what I want?
I called Coinbase and they can’t seem to understand that I’m NOT asking them to set up a 401K for me. They are of no help.
RESPONSE:
While Coinbase regularly changes their procedures (so the exact current steps may be different), the key point in the guides still holds that the key from a solo 401k perspective is to open account(s) under the name and EIN of the Solo 401k with separate accounts if there are multiple people participating in the Solo 401k (e.g. two spouses) and/or different types of funds (e.g. pre-tax and/or Roth).
With regards to your questions and for purposes of opening an account for a solo 401k, the best options are:
- Non-Operating Company
- For Individual Investment Purposes
- Other – enter “Retirement Trust” if asked to enter more information
Be prepared to provide the Solo 401k Adoption Agreement, Trust Agreement, and EIN letter as part of the verification process.
If Coinbase requests documents like Articles of Incorporation, clarify that the Solo 401k is a federal retirement trust and not a state-registered entity. Providing the Adoption Agreement and Trust Agreement should suffice.
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For anyone else looking to open a Coinbase Prime account using their Fidelity Roth trust or pre tax trust account, just a reminder Coinbase Prime charges you a $5000 fee to apply for the account. This is not refundable unless your account is denied, and is refundable also when you exchange more than $400k within 30 days. If anyone else has any guidance on a Trust account being opened with Gemini or Kraken for free please share.
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I was never able to get anywhere with Coinbase and the $5K deposit was a deal killer for me. I ended up opening a trust account with Gemini. I had some back and forth with their team via email as they had questions they wanted to ask me (purpose of the account, who are the owners of my business, how will we fund the account, etc) but it wasn’t difficult. It took a couple of weeks but the account is opened. I have not attempted to fund it yet. I’m not yet certain how to create sub accounts (pre tax and roth). I would need them for both me and my business partner.
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Hey Jay, when you opened a Gemini Institution account did you submit your Certification of the Trust, Trust documents, and bank statement as well as drivers license? I just completed the application but it’s only been a couple days and I’ve been trying to open it up for the Roth account specifically. Also wasn’t sure if you have a point of contact but I just emailed them.
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Hi Raj and Jay (et al),
The 5K deterred me also from completing the CB Institutional. If you didn’t finish setting up with Gemini yet, some additional options available in the near future that might work are Coinbase Business (which CB support told me will not have an application fee) or possibly with Fidelity (I plan on reaching out to them this week).
CB Business platform is not live yet but you can join the waitlist.
Good luck.
Lou
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