ForumsCryptocurrencyPersonal Coinbase Wallet with Solo401k

Forums Cryptocurrency Personal Coinbase Wallet with Solo401k

  • Personal Coinbase Wallet with Solo401k

    1 Reply
  • Top SubjectSolo 401k,Solo 401k Bank Account
    Top ForumsSolo 401k, Solo 401k Bank Account

    David W.
    Top SubjectSolo 401k,Solo 401k Bank Account

    March 26, 2022 at 2:12 am

    I saw on one of your webinars where the presenter mentioned that some solo401k owners open up a personal coinbase pro account and then strictly fund it with the solo401k funds and that this is acceptable versus getting a coinbase business account. Did i understand that correctly? Can i do this?

    David W.
  • George Blower

    Top SubjectSolo 401k,Solo 401k Contributions
    Top ForumsSolo 401k, Solo 401k Contributions

    George Blower

    George Blower

    Top SubjectSolo 401k,Solo 401k Contributions

    March 28, 2022 at 3:01 am

    Good question!

    Our clients have been investing their Solo 401k funds in cryptocurrency for many years and the industry has certainly evolved tremendously.

    For example, the number of exchanges that support accounts for Solo 401k plans has increased significantly.

    At the same time, regulatory oversight has likewise increased including imposing tax reporting obligations on the exchanges and the exchanges have responded by enhancing their onboarding applications and KYC processes.

    If one were to open an account under his or her own name and SSN in order to invest Solo 401k funds in cryptocurrency, this could likely result in tax reporting of activity in the account under such person’s name (and in turn, the IRS would expect such activity to be reported on the person’s tax return (i.e. 1040)).

    For this practical reason alone, when investing Solo 401k funds in cryptocurrency it is important to do so via an account under the name & EIN of the Solo 401k.

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