Bitcoin in an IRA.
Spot ETF, Bitcoin IRA, or Solo 401(k) self-custody.

Section 1 · Spot ETF in a standard Roth IRA

The simplest path. Open a Roth IRA at Fidelity, Schwab, or any major brokerage. Buy IBIT (iShares Bitcoin Trust), FBTC (Fidelity Wise Origin Bitcoin Fund), or ARKB verify×DON'T TRUST, VERIFYClaim: Spot Bitcoin ETFs (IBIT, FBTC, ARKB, BITB, etc.) are SEC-approved and held in standard brokerage accounts.Verify at: SEC EDGAR ↗Spot Bitcoin ETFs were approved in January 2024. Verify current expense ratios at each issuer's site..

What you give up

• Not your keys. The ETF holds the Bitcoin through a custodian (Coinbase Custody for IBIT and several others).
• ETF expense ratioexpense ratioThe yearly fee an investment fund charges, taken as a small slice of your balance. A 0.03% ratio costs $3 per year on every $10,000 invested. Lower is better.Full definition: approximately 0.12 to 0.25% per year.
• Counterparty risk: the ETF sponsor and their custodian.

What you gain

• Tax-free compounding in a Roth.
• No seed-phrase management.
• SIPCSecurities Investor Protection Corporation (SIPC)A nonprofit that pays back customers up to $500,000 if a stock brokerage firm goes bankrupt and loses their shares. It protects against the firm failing, not against your investments dropping in value. protection on the brokerage account (on your claim against the brokerage, not on Bitcoin price).

For most people who want Bitcoin in their retirement accounts, this is the right answer. See /strategy/spot-etfs/.

Section 2 · Bitcoin IRA custodians (Self-Directed IRAs)

Several specialized custodians offer self-directed IRAs (SDIRAs) that hold actual Bitcoin, not ETF shares.

Major custodians

• Unchained: multisig collaborative custody, IRA offering.
• Swan Bitcoin: IRA offering with self-custody pathway.
• iTrustCapital: larger, more account types.
• IRA Financial Group: checkbook IRA specialist.

The trade-offs

• Fees: setup fees often $200-500. Annual custody often $250-500+. Transaction fees often 1-2% per purchase. On a $10,000 contribution, these fees are significant relative to a spot ETF at 0.25%.
• Custody: you hold actual BTCBitcoin (BTC)The ticker symbol for Bitcoin, used on exchanges and in price quotes.Full definition, not ETF shares. The custodian holds the keys, not you. Still not truly self-custodied.
• Regulatory status: SDIRAs are legitimate, but verify any specific custodian is IRS-compliant verify×DON'T TRUST, VERIFYClaim: Self-Directed IRAs holding alternative assets (including Bitcoin) are permitted under IRS rules but require qualified custodians.Verify at: IRS IRA guidance ↗SDIRAs themselves are valid; quality of the custodian and prohibited-transaction compliance matter most..

Section 3 · Solo 401(k) self-custody

The most advanced and most sovereign option. A solo 401(k) is a retirement plan for self-employed individuals with no employees other than a spouse. See /accounts/solo-401k/.

The self-custody pathway

1. Set up a solo 401(k) through a provider that allows "checkbook control," where the plan has its own LLC or trust with its own bank account that you control.
2. Use that account to purchase Bitcoin directly.
3. Hold the Bitcoin in self-custody (hardware wallet owned by the plan).

The result: you are the trustee of your own retirement plan. The plan holds Bitcoin in self-custody. The Bitcoin grows tax-deferred (Traditional) or tax-free (Roth solo 401(k)). You hold the actual keys.

Risks and complexity

• IRS prohibited-transaction rules are strict. Violating them collapses the plan and triggers immediate taxation verify×DON'T TRUST, VERIFYClaim: IRC 4975 prohibited-transaction rules disqualify retirement plans that engage in self-dealing.Verify at: IRS prohibited-transactions guidance ↗Plan cannot transact with you personally. Plan Bitcoin cannot be mixed with personal Bitcoin. The hardware wallet must be clearly for the plan..
• Requires meticulous record-keeping.
• Not for people who want simplicity.
• Requires self-employment income.

The rules to know

• The plan cannot transact with you personally (no lending from plan to yourself).
• The plan Bitcoin cannot be mixed with your personal Bitcoin.
• The hardware wallet holding plan Bitcoin must be clearly designated for the plan.

Providers who facilitate this approach: IRA Financial Group, Broad Financial, others. This setup requires a CPA or specialized provider to do correctly.