Your plan entity must be the account holder on any cryptocurrency exchange, not you personally. This requires opening a commercial or institutional account, which is a different process than a standard individual account and not supported by every exchange.
A personal exchange account registered to your name, email address, or Social Security number is not acceptable for plan investing, even if you intend to use it exclusively for plan funds. The account must be in the name of the plan entity: your IRA LLC, IRA Trust, or Solo 401(k) trust. Any exchange that cannot register an account to a legal entity is not a suitable option for your plan.
Not all exchanges support entity accounts, and those that do vary significantly in the quality of their onboarding process. Because most cryptocurrency exchanges do not offer phone support, issues that arise during account setup must be resolved through email or chat, which can be slow and frustrating.
Kraken and Gemini have been the most reliable options for plan entity accounts. Both support LLCs, trusts, and retirement plan trusts, have documented institutional onboarding processes, and are accessible to clients in most US states.
Coinbase has historically been difficult to work with for entity accounts. Account applications are frequently delayed, rejected, or require repeated follow-up with limited support responsiveness. Coinbase is not a recommended choice for this reason.
Before committing to any exchange, confirm that it can open a business or institutional account for your specific entity type and that it services your state of residence. Availability varies by state, and some exchanges are restricted in states such as New York and Hawaii.
Exchanges require documentation to verify the entity and your authority to act on its behalf. Have the following ready before starting an application:
Do not begin the application until your plan entity is established and your bank account is open. Most exchanges require a bank statement from the entity account, which means the account must be funded before you can complete onboarding. With a new account, you can often contact the bank and request a "letter of account" rather than wait for the next statement cycle.
Institutional account applications take longer than personal accounts. Allow at least one to two weeks, and potentially longer during periods of high exchange volume. The extra documentation requirements and the absence of phone support mean patience is required.
You will be listed as the authorized person on the account and will need to provide your personal identification and confirm your signing authority. This is expected and does not change the fact that the account belongs to the entity, not to you.
Once approved, fund the exchange account by wire or ACH from your plan entity bank account. Some exchanges require a small test transaction to verify the banking connection before larger transfers are processed.
Can I use an exchange account I already have personally?
No. A personally registered account cannot be converted to an entity account, and you cannot use a personal account for plan funds under any circumstances. You must open a separate institutional account in the plan entity name.
What if my preferred exchange doesn't support entity accounts?
You will need to choose a different exchange. There is no workaround. The entity must be the registered account holder. Investing through a personal account and managing the funds as plan assets is not permissible and could be viewed as taking a distribution from the plan.
Can I use a foreign exchange?
This is not generally advisable. Most foreign exchanges are not able to register US-based retirement plan entities, and currency conversion and regulatory risks add complexity. Stick to US-based exchanges with documented support for institutional accounts.
This information is provided for educational purposes only and should not be interpreted as tax, legal, or investment advice. Readers are encouraged to consult a qualified professional who can offer guidance based on their personal situation.