Rocket Dollar crypto: buying bitcoin with a checkbook IRA or solo 401(k)
Rocket Dollar itself does not sell crypto. After they set up your checkbook IRA or solo 401(k), open a Kraken or Gemini business account under the IRA's or plan's name to buy the coins.
Rocket Dollar prices, and which accounts can buy crypto
| Plan | Accounts | Setup | Each month | Crypto? |
|---|---|---|---|---|
| Silver | Self-directed IRA; the custodian handles each deal | $360 | $30$720 in year one | This direct-custody IRA cannot be supported at Kraken, according to Rocket Dollar. |
| Gold | This plan offers a checkbook IRA with a dedicated trust checking account (the solo 401(k) is listed at this same price in Rocket Dollar's table). | $600 | $40$1,080 in year one | Yes: open a Kraken or Gemini business account using the IRA's or plan's name. |
| Platinum | All three together: a checkbook IRA, IRA LLC and a solo 401(k), with outgoing wires free | $900 | $50$1,500 in year one | Yes, the same way as Gold |
- Crypto exchanges
- Buy through Kraken or Gemini using a business account owned by your IRA or solo 401(k).
- Coin custody
- You are the holder: either you keep the keys, or the coins stay in an exchange account set up for the IRA or plan.
- Additional fees
- A wire sent from a solo 401(k) or the checkbook account is $10; from a direct-custody IRA, or paid into the checkbook account, it is $35. Digital Trust, the custodian, may add its own fees.
Rocket Dollar's price page provides these figures. See every solo 401(k) provider compared side by side.
Rocket Dollar crypto: how the purchase works
- Start a checkbook IRA or solo 401(k) with Rocket Dollar.
- Transfer funds from an existing IRA or old 401(k).
- Request a business account at Kraken or Gemini using the IRA or plan name.
- Transfer funds from the IRA's or plan's own checking account over to the exchange to make your purchase.
Open a new business account rather than using your personal one. Rocket Dollar warns that personal accounts in your name cannot hold retirement funds and may trigger tax issues. No minimum exists at either exchange, but Kraken denies New York and Washington state applicants (Rocket Dollar's Kraken page).
Rocket Dollar fees next to a crypto IRA
Rocket Dollar uses flat fees that do not change with your balance. With the Gold plan, a $10,000 balance pays $480 a year, or 4.8%; at $50,000, that's about 1%. Flat fees pay off only on bigger balances, since most crypto IRAs charge a share of every purchase.
Trading fees come from both Kraken and Gemini, and the custodian, Digital Trust, may bill extra for some deals (Rocket Dollar's pricing page).
Rules you follow on your own
With checkbook control, no one signs off on each purchase, so it is your job to follow the IRS rules. For instance, you may not borrow from the account or use it to buy items for yourself. Review the IRS list of prohibited transactions before buying.
