Investing in Altcoins and Stablecoins with Your Retirement Account – FAQ Guide

Whether you’re a crypto-savvy investor or just starting to plan for retirement, the recent shift in the Department of Labor’s (DOL) stance, from urging “extreme care” to adopting a more neutral position on crypto in retirement portfolios, has sparked renewed interest and questions. Can you include altcoins and stablecoins in your IRA or 401(k)? What are the risks, benefits, and strategies? This FAQ guide answers the most common and timely questions about how to integrate digital assets into your retirement account with confidence and clarity.

1. Can I invest in altcoins or stablecoins through a retirement account?

Yes. You can invest in altcoins and stablecoins using a Self-Directed IRA (SDIRA), Crypto IRA, or Solo 401(k). These specialized accounts allow you to access digital assets that traditional retirement accounts do not support.

2. What is a Self-Directed IRA (SDIRA) and how does it help?

An SDIRA is a type of IRA that gives you control over a broader set of assets, beyond traditional stocks and bonds, including real estate, precious metals, and cryptocurrencies. Through a crypto-friendly custodian, you can invest in assets like Ethereum (ETH), Cardano (ADA), Solana (SOL), and stablecoins such as USDC or USDT.

3. Are there ETFs that give exposure to altcoins in my IRA?

Yes, but with limitations. While some ETFs provide indirect exposure to blockchain technology or hold crypto-related companies, Ethereum is currently the only altcoin with an approved spot ETF in the U.S. Other altcoin ETFs are either futures-based or not yet approved. For broader access, a Self-Directed IRA is still a better route.

4. Can I stake altcoins in a retirement account?

Yes, if your custodian supports staking. Crypto IRAs and SDIRAs offered by some providers may allow staking of supported assets. Popular options include: 

• Ethereum (ETH) 

• Cardano (ADA) 

• Polkadot (DOT) 

• Solana (SOL) 

Staking offers the potential to earn passive income while holding assets long-term.

5. How can I use a Solo 401(k) to invest in crypto?

If you’re self-employed or run a small business with no full-time employees (except a spouse), you qualify for a Solo 401(k). A self-directed version of this plan can be used to invest in crypto, offering: 

• Higher contribution limits than IRAs 

• Flexibility to allocate to stablecoins and altcoins 

• The ability to take loans (up to 50% of the account balance or $50,000, whichever is less) from your plan

6. What are the benefits of holding altcoins and stablecoins in a Roth IRA?

Holding altcoins and stablecoins in a Roth IRA provides the advantage of tax-free¹ growth and tax-free withdrawals in retirement (if you meet certain requirements). This is especially attractive for assets like altcoins, which may appreciate significantly over time. Any gains on tokens like SOL or LINK would be 100% tax-free when withdrawn after age 59½.

7. When is the best time to buy altcoins for my retirement account?

While timing the market is difficult, many long-term investors use a strategy called Dollar-Cost Averaging (DCA). This involves making consistent, scheduled investments, monthly or quarterly, regardless of market conditions. DCA helps reduce volatility risk and emotional decision-making.

8. Should I rebalance between stablecoins and altcoins?

Yes. Many crypto retirement investors adopt a balanced strategy, maintaining a mix of stablecoins and altcoins. Rebalancing allows you to: 

• Lock in gains from altcoin price increases 

• Reduce portfolio volatility 

• Adjust exposure during market cycles

9.  What are the contribution limits for Crypto IRAs and 401(k)s?

For 2025, the IRS limits are: 

• Traditional & Roth IRAs: Up to $7,000/year (or $8,000 if age 50+) 

• SEP IRAs: Up to 25% of compensation, capped at $70,000 

• Solo 401(k): Up to $70,000 in total contributions (employee + employer), or $77,500 with catch-up contributions (age 50+) 

These contributions can be allocated toward crypto if using a self-directed or crypto-enabled plan.

10. What are the benefits of including altcoins in an IRA or 401(k)?

Including altcoins and stablecoins in a retirement portfolio offers: 

• High-growth potential from emerging digital assets 

• Diversification beyond stocks and bonds 

• Access to DeFi income (staking, yield farming) in compliant custodial settings 

• Tax advantages, such as tax-deferred or tax-free growth (depending on account type) 

By thoughtfully integrating crypto, you can position your retirement portfolio for both innovation and long-term resilience. 

Final Thoughts 

Crypto is no longer on the fringe of retirement planning. With regulatory clarity evolving and custodians offering secure access, investors now have real tools to diversify with altcoins and stablecoins, responsibly and tax-efficiently. 

Ready to Take the Next Step? 

Open a Crypto IRA today with BitcoinIRA², the leading platform for investing in cryptocurrencies through tax-advantaged retirement accounts. With 24/7 trading, cold storage security, and support for over 75+ assets (including altcoins and stablecoins), BitcoinIRA makes it easy to take control of your financial future.