Schwab crypto: what a Schwab 401(k) can and cannot hold
A Schwab 401(k) won't let you buy bitcoin or other crypto coins directly. You might still get crypto exposure through funds, though. The path is Schwab’s Personal Choice Retirement Account, or PCRA; it exists only when your employer’s plan includes one.
Schwab 401(k) and crypto at a glance
- Route to crypto
- Funds that follow crypto prices, bought through Schwab's brokerage window if your plan offers one; no coins
- Switched on by
- Your plan must offer Schwab's brokerage window
- Limit
- Set by your plan
- Cost
- No fee for the window itself; you pay to buy or sell, plus each fund's yearly fee
- Held by
- The fund, which hires a firm to store the coins
- What it holds
- Shares of crypto funds, not coins
From Schwab's own page. Compare every 401(k) provider side by side.
If your plan offers none of this: an old Schwab 401(k) can roll over to a crypto IRA
- iTrustCapital: $500 to buy in and $0 a year on $50,000
- Fidelity Crypto IRA: $500 to buy in and $0 a year on $50,000
- Coin IRA: $625 to buy in and $0 a year on $50,000
Bitcoin in a Schwab 401(k)?
You can't own the coins themselves, but inside a PCRA your 401(k) can hold crypto-linked ETFs and funds.
An ETF is a fund you can buy and sell on the stock market, much like one stock. With a crypto-linked ETF, you hold fund shares rather than the coins themselves.
The PCRA brokerage window
Schwab calls its brokerage window a PCRA. That is an optional account within a 401(k) that allows you to buy funds and ETFs outside the plan’s standard menu.
ADP plans that use Schwab follow the same setup. According to the ADP participant guide, where the Schwab PCRA is offered, it is limited to funds and ETFs and does not offer direct crypto.
Who offers the PCRA option?
That choice belongs to your employer’s plan. A PCRA has to be offered by your plan first; a Schwab 401(k) alone does not guarantee this option.
Your plan also sets the share of your balance that can move into the PCRA. Schwab’s page says your plan sets that cap, and the number can vary by employer.
Costs inside a PCRA
Schwab says there is no PCRA fee. You still pay trading costs when you buy or sell, and every fund has expenses of its own.
Schwab Crypto is a different account
The company also runs a separate crypto service for trading bitcoin and ether. It charges 0.75% of the value of each trade, and that service is separate from your 401(k).
For a 401(k), crypto access comes through the PCRA and the funds it can hold.
| Path | What you hold | Schwab’s fee |
|---|---|---|
| PCRA in your 401(k) | Shares of crypto-linked ETFs or funds | No PCRA fee; you pay trading costs and fund expenses |
| Schwab Crypto | Bitcoin and ether | 0.75% of each trade |
Federal rule for crypto in 401(k) plans
On May 28, 2025, the U.S. Department of Labor released Compliance Assistance Release 2025-01, pulling back its 2022 crypto guidance. The 2022 guidance had urged plans to be extremely careful with crypto. According to the new release, that standard has no basis in statute. The department, it says, neither supports nor opposes crypto. Your plan still has the final say on what you may hold.
Rolling 401(k) savings into a crypto IRA
If you'd rather own actual coins than fund shares, a crypto IRA is the other route. It's held by a custodian, the company that keeps the account's assets and records.
Money from a former employer’s plan may be rolled over whenever you choose. Money in your present employer’s plan can move only through an in-service rollover, and only when the plan permits it.
With a direct rollover, money travels straight from the old plan into the new custodian’s account. The full amount stays invested, untaxed and free of the 10% penalty. When the plan sends the money to you, though, it keeps 20% for federal tax, which is $4,000 out of $20,000. From there, you get 60 days to deposit the entire sum into an IRA, including whatever was kept back.
Cashing out instead of rolling over can cost you a lot. Picture someone age 45 who withdraws $20,000 and owes 22% to the IRS plus another 5% to their state. After the 10% early-withdrawal charge and all those taxes come out, just $12,600 remains.
Crypto IRA costs at $10,000
Here is what each custodian would charge on a $10,000 purchase, first to get in and then each year afterward:
- iTrustCapital: $100 to buy in, then $0 a year
- Fidelity Crypto IRA: $100 to buy in, then $0 a year
- Coin IRA: $125 to buy in, then $0 a year
- Public (Alto CryptoIRA): $125 to buy in, then $60 a year
- IRA Financial: $100 to buy in, then $100 a year
- Swan: $100 to buy in, then $240 a year
- Choice: $149 to buy in, then $240 a year
- BitcoinIRA: $200 to buy in, then $240 a year
- Unchained: $150 to buy in, then $250 a year
The yearly costs assume you don't trade after buying in. If you plan to trade often, expect to pay more.
If you'd like to go over it, you can call a retirement specialist or use the consultation form. They'll explain your options; the decision stays yours.