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Crypto Rollover: 401(k) To An IRA

Rollover Your Current 401(k) To A Self-Directed Crypto IRA

Have an old employer retirement plan from a previous employer? You can roll it over to a crypto IRA and take control of your retirement investments while keeping your tax advantages intact. Whether your plan is a 401(k), 403b, TSP, 457, (and even some pensions) our team is here to walk you through the process.

Once you’ve created an account, we will provide you with instructions on how to start the crypto IRA rollover process.

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401k Rollover to Crypto IRA with MyDigitalMoney

How A Crypto 401(k) Rollover Works

Diversify Your Portfolio by Converting Your 401(k) To A Crypto IRA

The process to rollover a 401(k) to cryptocurrency works slightly differently than transferring an IRA. Unlike an IRA transfer, only you can request a 401(k) crypto IRA rollover from your current administrator. We will give you instructions on starting the process and help with any required paperwork or documentation requested.

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Frequently Asked Questions

Common Questions About 401(k) Rollovers

Thinking about converting your 401(k), or other employer plan to a crypto IRA? Here are a few questions we hear from our customers. Don’t see an answer to your question? Contact our team, we’d be happy to help.

What Is A Crypto IRA?
A crypto IRA is a retirement account similar to a traditional IRA, but instead of holding stocks or bonds, it allows you to hold cryptocurrency. The main benefit of a crypto IRA is that it allows you to diversify your retirement portfolio with a new asset class that has the potential to grow at a higher rate than more traditional investments. You can learn more about what a crypto IRA is in this article.
Can I Roll Over A 401(k) To An IRA?
Absolutely. If you’re no longer happy with your 401(k) or simply want to move the funds to a self-directed retirement plan, a rollover IRA crypto option might be right for you. You can roll over your 401(k) to an IRA without incurring any taxes or penalties. But you can only roll over a 401K for a non-active employer, one that you are no longer contributing to.

Unlike an IRA transfer, we can’t handle this process for you, but our team is ready to help with every step of your 401(k) to IRA rollover.
Is There a Limit on the Amount I Can Rollover to a Crypto IRA?
There is no limit on the amount that you can roll over and, once complete, you will have access to a larger variety of investment options.
Can I Move My 401(k) To An IRA Without Penalty?
Yes, you can rollover your 401(k) to an IRA without incurring any taxes or penalties, as long as you complete the rollover within 60 days of withdrawing the funds. If the IRA rollover to crypto is not completed within 60 days, it will be subject to a penalty.

While this may sound like a non-issue, many 401(k)s send physical checks instead of online transfers. So, it’s essential to be on top of timelines to ensure you deposit the funds within the allowable window.
Does It Cost Money to Roll Over A 401(k) To An IRA?
There are no fees or hidden costs for you to roll over your 401(k) to a crypto IRA with My Digital Money. The only caveat is that the funds must be deposited within 60 days of the withdrawal, or you will incur a penalty. Note that if you choose to rollover into a Roth IRA, there will be tax consequences as a Roth IRA is taxed at the time of contribution.
How Long Does A 401(k) Roll Over Take?
The 401(k) crypto rollover process takes slightly longer than an IRA transfer. Unlike an IRA transfer, we are not allowed to communicate with your plan administrator; only you can request the rollover. However, our team is happy to help you compile any necessary information and documents. We can also provide you with exact instructions on what to request from your administrator.

One of the reasons that a 401(k) rollover takes longer than an IRA transfer is that plan administrators will typically send the funds with physical checks, not electronic transfers. We find that most customers who roll over a 401(k) can start trading in their crypto IRA within about two weeks.
How Much Will An IRA Reduce My Taxes?
When you contribute to your traditional crypto IRA account, you can deduct the full amount contributed from your taxable income. This means that if you’ve earned $100,000 in a tax year and you make the maximum contribution of $6,000 to your IRA, your taxable income will only be $94,000. The maximum contribution limit is imposed by the IRS and is $6000 – $7000 depending on your age. See your Tax Accountant for your specific situation and guidance.