Distributions are a core feature of retirement accounts, and when crypto is involved, wrapper selection plays a critical role. The rules for when and how you can withdraw assets differ sharply depending on your structure.
Traditional IRAs require you to start taking required minimum distributions (RMDs) after reaching a certain age. This can force you to sell crypto even when the market is down. Roth IRAs, on the other hand, do not require RMDs during the account owner’s lifetime, giving you more flexibility to let your assets grow. Self-directed wrappers may allow more creative strategies but often come with heightened custodial oversight.
Understanding these nuances is vital, since being forced to liquidate crypto at the wrong time could undermine your retirement plan. The resource Choosing the Right IRA Wrapper for Digital Assets explains how distribution rules differ across wrappers, particularly in the context of volatile digital assets.
Before you commit, ask yourself how much control you want over withdrawals and whether forced distributions align with your investment timeline. For most crypto investors, flexibility is key, making wrapper choice a decisive factor. Review “Choosing the Right IRA Wrapper for Digital Assets” to see which structure gives you the control you need.