Mark Kohler breaks down two ways to trade crypto in a Roth IRA: use an app like Gemini directly, or set up a Directed IRA where the Roth owns an LLC that accesses Kraken for more tokens. If you go the LLC route, any equipment the LLC uses must be dedicated only to that business, or the IRS will come asking questions.
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There's really two types of crypto Roth IRAs that we recommend, and we have a Directed IRA, our sister company. One is you can just have an app dialed in with your Roth IRA and Roth 401k, where you can just trade right on your app, on your phone. That's what I have. I don't need an LLC for that. We use the Gemini platform for that. So I can only buy and sell tokens on the Gemini platform. Now, for some hardcore truist crypto traders out there, they want some defi tokens and some other things that may not be available on the Gemini platform. So in order to do that triple trading, they've got to open an llc, owned their Roth ira, and then their llc, we use Kraken, would go out and open up an account under the LLC and start doing some more creative trading inside those wallets that maybe Gemini wouldn't allow. Okay, so we got two ways to invest with crypto inside an ira. Now, in this example, Blake's gone with the llc. Okay, that's cool. And in a normal business, that LLC should be able to pay for any expense directly related to that LLC in order to make money. Now, here's where the IRS might have some heartburn. Let me get this straight. You need a brand new laptop or computer for that LLC to trade your crypto. You cannot touch that laptop for anything else, not even to look at an email from your mom. Is that okay with you? Because you have to keep in mind, Blake, that's not your llc, that's not your crypto account, that's your Roth's account, and that's going to be Roth Equipment.
