Last updated on October 12th, 2017 at 11:59 pm
I want to setup a cryptocurrency wallet in an account owned by my Solo 401K trust. Where/How can I do this? My concern is that wallet account setup pages do not allow an entity like a trust to have ownership of the account. If I set the account up in my name, the IRS may treat any funds transferred into the wallet account from my Solo 401K as a distribution. Distributions are taxable and hence best to be avoided. How can I set up a wallet account using the entity name for my trust?
FYI – Coinbase is the only site I could find an answer for this question. In their FAQ, coinbase indicates they do not support accounts setup by trusts.
Most cryptocurrency exchanges and wallet only let individuals to register for it’s services in order to comply with AML regulations. If you do not want the account to be registered under your name you can use an exchange that allows transactions without verification of your identity, so you can use the account anonymously. However as your question is very specific to the local regulation and taxation, I think it is the best to consult a lawyer and a tax advisor how to treat these distributions from Bitcoin.
Hi Clyde and Josh. I have the same question. A lawyer for the company that I used to set up my Solo 401k suggested setting up an institutional account through Gemini.com. He said other people with Solo 401k’s have used Gemini for this purpose. I have submitted requests to the following exchanges so far: Gemini, Poliniex, Kraken, ItBit, but have not heard back from anyone yet. Have you made any progress?