When you finish, your old 401k money will be sitting in an IRA that can hold Bitcoin, with no tax withheld and nothing owed. On the paperwork side it usually takes one to two weeks. Equity Trust, for example, quotes 7 to 10 business days for a direct rollover.

The one thing to know before you start is that you should ask for a direct rollover. In a direct rollover, the 401k sends the money straight to the new IRA custodian, so it never passes through your hands. The alternative is a 60-day indirect rollover, where the plan cuts you a check. The plan must withhold 20% of that check, and you have to replace the missing 20% from your own pocket within 60 days or it is taxed. The IRS example makes this concrete: a $10,000 distribution arrives as $8,000, and you have to come up with the other $2,000 yourself.

What you need

  • A 401k from a former employer

    Old-employer plans can always be rolled over. A plan at your current job usually blocks rollovers unless you are 59½ or older or the plan document allows it.

  • Whether each dollar is pre-tax or Roth

    Your 401k statement splits these out. The split decides where each part can go without tax.

  • A destination IRA account number

    Open the new IRA first, as the same type as the money: traditional for pre-tax, Roth for Roth.

  • About $50 to $150 for the old plan's fee

    This is a typical outgoing trustee fee, per BeInCrypto. The five custodians compared by Rollover Guidance charged $0 on the receiving end.

Seven steps from old plan to Bitcoin

  • Pick where the money lands

    Each provider takes rollovers in its own way. Fidelity Crypto IRA deposits the money into a companion Fidelity brokerage IRA, and you move it from there into the crypto account. iTrustCapital holds coins with Coinbase Custody. Swan's IRA is Bitcoin-only and held in your name. BitcoinIRA custodies through BitGo Trust. I could not confirm Unchained IRA's intake process from a primary source, so ask them directly. Done when: you have one provider chosen.

  • Open the matching IRA with that provider

    Done when: you have an account number and the custodian's rollover instructions, including the exact payee name and mailing or wire details.

  • Call or log in to the old 401k and request a direct rollover

    Use the words "direct rollover" and give the payee as your new custodian, for the benefit of you. Some providers, BitcoinIRA among them, will start this request with you. Done when: the plan confirms that no tax will be withheld.

  • Send pre-tax and Roth money to separate destinations

    Pre-tax money goes to the traditional IRA, and Roth 401k money goes to the Roth IRA. Done when: the request shows two payees if you have both kinds of money.

  • Watch for the funds to arrive as cash

    401k money moves as cash, and the custodian buys the Bitcoin after it arrives. Done when: a cash balance appears in the new IRA.

  • Place the Bitcoin buy

    Trading costs vary by provider. On the dates the sources were published: BitcoinIRA charged 2% per trade plus 0.08% a month, iTrustCapital and Swan charged 1% per trade, and Fidelity charged a spread of roughly 1%. Done when: the IRA shows a Bitcoin balance.

  • Keep the 1099-R

    Early the next year the old plan will send a Form 1099-R. A direct rollover should carry distribution code G, which marks it as a non-taxable rollover. You still report it on your tax return.

There is a plainer route. You can roll into an ordinary IRA at a brokerage and buy a spot Bitcoin ETF there, such as IBIT, FBTC or ARKB. Rollover Guidance puts ETF expense ratios at 0.12% to 0.25%, compared with asset-based annual fees of 0.5% to 1.5% at many crypto IRAs, according to IRA Research Hub. The tradeoff is that you own a fund rather than the coins. The pillar on choosing a Bitcoin IRA route weighs the two.

When the tax bill shows up anyway

Moving pre-tax 401k money into a Roth is a Roth conversion, not a plain rollover. The whole converted amount counts as income in the year you move it. If you did not mean to convert, it happened because the payee was the Roth account instead of the traditional one. Pre-tax money into a traditional IRA is not taxed, and neither is Roth 401k money into a Roth IRA.

The plan treated your request as an indirect rollover. You have 60 calendar days from the day you receive the check to deposit the full amount, including the withheld 20%, which you would cover from savings. Any part you do not deposit is taxed, plus a 10% additional tax if you are under 59½. The IRS can waive the deadline for circumstances beyond your control, but it is safer not to count on that. IRS Topic 413 has the full rule.

Some kinds of distributions can never be rolled over: required minimum distributions, hardship withdrawals, plan loans treated as distributions, and series of substantially equal payments. If you are old enough to be taking RMDs, take this year's RMD first and roll over the rest.

No. The coins have to stay with the IRA's custodian. If you take personal control of the keys, the IRS can treat it as a distribution from the IRA.

What comes next

The old 401k is now in an IRA you control, and new money can go in each year. For 2026 the IRA limit is $7,500, or $8,600 if you are 50 or older. The rollover itself did not count toward that limit. How much of it can go toward Bitcoin depends on your 2026 Roth contribution limits and on your income.