Most retirement accounts stick to the basics: stocks, bonds, and mutual funds. But today’s investors want more control—and more opportunity. Self-Directed IRAs (SDIRA) and Solo 401(k) plans give you the freedom to add alternative assets like cryptocurrency, NFTs, and private equity to your retirement portfolio, all while keeping the same tax advantages of a traditional or Roth IRA.
In this guide, we’ll walk you through how these assets work inside a retirement account, the rules you must follow to stay compliant, and how IRA Financial makes the process straightforward.
In this guide, we’ll show you how to add:
- Crypto — the fastest-growing asset class, now accessible 24/7 through IRAfi Crypto.
- NFTs — a new frontier, but with high IRS scrutiny.
- Private Equity/Venture Capital — long-term growth potential with special compliance rules.
And most importantly, we’ll cover how to stay compliant with IRS rules so your retirement plan remains secure.
Key Takeaways
- Best vehicle: A Self-Directed IRA or Solo 401(k) with a specialist custodian.
- Crypto: With IRAfi Crypto, you can trade 45+ tokens 24/7, no LLC required. Fees are transparent ($0 setup, ~$100/year, ~1% per trade). IRS reporting is handled for you.
- NFTs: Risky in IRAs—many may be considered “collectibles” (disallowed). Safer paths include indirect exposure, such as investing in NFT platforms or funds.
- Private equity/VC: Allowed in IRAs, but you must account for special tax rules (UBIT/UBTI, debt financing). Custodians handle titling and documentation.
- Guardrails: Always avoid prohibited transactions, title assets correctly, and be prepared for annual IRS reporting.
Why Use a Self-Directed IRA for Alternatives?
A Self-Directed IRA expands your retirement menu far beyond public markets. You can hold crypto, private equity, real estate, precious metals, and more—with the same tax advantages of a traditional or Roth account. If you’re self-employed, the Solo 401(k) plan is the best plan for you.
To stay compliant, you’ll need a qualified custodian. That’s where IRA Financial comes in.
- Self-Directed IRA: Broad access to alternative assets with expert custodianship.
- Solo 401(k): Best plan for the self-employed or small business owner with no employees (other than a spouse)
- IRAfi Crypto: A streamlined, no-LLC crypto IRA experience, powered by Bitstamp. Plan-level IRS reporting is handled for you.
Part 1 — Crypto in a Retirement Account: The Fast, Compliant Path
For many young investors, cryptocurrency is the first alternative asset they want in their retirement account. IRA Financial offers three main ways to get started.
Option 1: IRAfi Crypto (Most Streamlined)
- Open and fund a traditional, Roth, Solo 401(k), or other plan with IRA Financial.
- Activate IRAfi Crypto and trade 45+ tokens 24/7 on Bitstamp.
- Transparent pricing: $0 setup, $100/year, 1% per trade.
- IRS reporting handled (no LLC required).
👉 Most investors choose this path for its simplicity and compliance.
Option 2: Checkbook-Control SDIRA LLC (Advanced)
- Allows full wallet control and non-exchange workflows.
- Involves entity administration, additional recordkeeping, and higher compliance risk.
- Best for investors with specialized custody needs.
- Use any exchange you want.
Option 3: Solo 401(k) + IRAfi Crypto (For the Self-Employed)
- Combines higher contribution limits with crypto investing.
- Choose traditional or Roth contributions depending on your tax outlook.
Security & Custody Notes
- IRA Financial is your custodian.
- Bitstamp executes trades.
- You don’t hold a personal wallet; this ensures proper titling and IRS compliance.
Tax Advantages
- Traditional: Contributions may be deductible; growth is tax-deferred.
- Roth: Contributions are after-tax; qualified withdrawals are tax-free—ideal for volatile, high-growth assets.
📌 Take Action: Open a Self-Directed IRA and activate IRAfi Crypto today to start trading crypto inside your retirement plan.
Part 2 — NFTs: Proceed with Extreme Care
NFTs are one of the riskiest assets to hold in an IRA.
What the IRS Says
- Many NFTs may be treated as “collectibles” under tax law.
- Collectibles are generally disallowed in IRAs.
- Buying one directly could be treated as a taxable distribution.
Safer Approach
- Focus on indirect exposure: invest in NFT platforms, infrastructure companies, or funds.
- This avoids “collectible” classification and keeps custody simpler.
📌 Take Action: If you want NFT exposure, consider indirect routes inside an IRA until the IRS issues final guidance.
Part 3 — Private Equity & Venture Capital in an IRA
Private markets can deliver strong long-term returns—and you can access them with a Self-Directed IRA.
What You Can Invest In
- LP units, LLC membership interests, private placements, secondary interests, and funds of funds.
- All must be titled in the name of your IRA, not you personally.
- Custodian signs subscription documents; profits flow back to the plan.
Key Tax and Compliance Rules
- UBIT/UBTI: Some business income is taxable inside an IRA. If triggered, your IRA must file Form 990-T and pay taxes from plan assets.
- Debt financing (UDFI): Leveraged investments may create taxable income inside the IRA.
- Accreditation & disclosures: Securities laws still apply; your custodian does not conduct issuer due diligence.
- No self-dealing: You and disqualified persons cannot benefit personally or provide services to the investment.
How IRA Financial Helps
- Streamlined custody process.
- Custodian signs required documents.
- Support for annual FMV reporting.
📌 Take Action: Explore private equity opportunities with a Self-Directed IRA from IRA Financial.
Guardrails to Stay Compliant
✔ Title assets in the IRA’s name (never your own).
✔ Avoid prohibited transactions with disqualified persons.
✔ Complete annual fair market value (FMV) reporting.
✔ Keep cash available in the plan in case UBIT applies.
30-, 60-, 90-Day Action Plan
Day 1–30: Setup
- Decide traditional vs. Roth.
- Open and fund your SDIRA (or Solo 401(k) if eligible).
- If crypto is your priority, activate IRAfi Crypto.
Day 31–60: Execute
- Crypto: start with staged trades; enable two-factor security.
- Private equity: research funds; confirm UBIT exposure; reserve cash for tax filings.
- NFTs: pursue indirect exposure only.
Day 61–90: Operationalize
- Schedule reminders for FMV reporting, capital calls, and tax filing deadlines.
- Conduct a quarterly portfolio check.
- Add a second alternative sleeve once compliance feels routine.
Quick FAQs
Can a Roth IRA buy crypto directly?
Yes. With IRAfi Crypto, you can hold assets like Bitcoin and Ethereum in a Roth IRA, pursuing tax-free growth if qualified.
Can my IRA buy an NFT that grants club access (not “art”)?
Possibly, but risk remains. The IRS applies a “look-through” rule. If the NFT represents a collectible right or property, it’s likely disallowed. Safer to use indirect exposure.
Do private equity funds inside IRAs ever trigger taxes?
Yes. If they generate business income or use leverage, your IRA may owe UBIT. If so, the IRA—not you—files Form 990-T and pays from plan assets.
Conclusion
Your retirement savings shouldn’t be limited by Wall Street’s default menu. With the right guidance, your IRA can hold digital assets and private investments—without sacrificing compliance or peace of mind. Whether you’re looking to trade crypto 24/7, explore NFT opportunities, or tap into private equity growth, a Self-Directed IRA from IRA Financial gives you the tools to invest freely and retire confidently. The next step is simple: open your account, choose your strategy, and let us handle the compliance details so you can focus on building the future you want.
🚀 Get Started Today
- Open an account to access private equity and more.
- Activate IRAfi Crypto to buy/trade digital assets inside your plan today.
- Prefer white‑glove guidance? Schedule a Consultation
