How to Roll Over a 401(k) or IRA Into a Bitcoin IRA, Step by Step

The cleanest way to move a 401(k) or IRA into a Bitcoin IRA is a direct move: a trustee-to-trustee transfer from an IRA, or a direct rollover from a 401(k). The money goes straight from the old account to the new one, nothing is withheld, and it generally isn't taxed when the account types match. Open the Bitcoin IRA first, then request the move. At Onramp, the IRA partner is Heritage IRA Inc., the bitcoin sits in Multi-Institution Custody, and most clients finish setup in 5 to 7 business days.

Many people who open a Bitcoin IRA fund it from money they already have in a retirement account, so the move itself is where the questions pile up. This page walks through the move in order: which kind of move you're making, how to keep taxes out of it, what your old provider may ask for, how long it takes, and how required minimum distributions fit in. If you're still deciding whether bitcoin belongs in a retirement account at all, start with Bitcoin IRA: The Complete Guide.

Transfers, Rollovers, and Conversions Are Three Different Moves

The words get used interchangeably, but the IRS treats them differently, and the difference decides whether anything is withheld or taxed.

• Trustee-to-trustee transfer. IRA to IRA. You ask the institution holding your IRA to send the money directly to your new IRA. Nothing is paid to you, and no tax is withheld.
• Direct rollover. A 401(k), 403(b), or other employer plan to an IRA. You ask your plan administrator to pay the money directly to your new IRA. No tax is withheld, and the plan may send a check made payable to the new account.
• Indirect, or 60-day, rollover. The old account pays the money to you, and you have 60 days to deposit it into the new IRA. This is the route that causes most of the trouble, covered below.
• Conversion. Moving pre-tax money (a Traditional IRA or a pre-tax 401(k)) into a Roth IRA. The IRS allows it, but the amount converted counts as taxable income for the year. At Onramp, conversions can be done on the platform.

The account types have to line up. Traditional and pre-tax money goes to a Traditional IRA. A Roth IRA can only move to another Roth IRA, and a designated Roth 401(k) can roll into a Roth IRA. Pre-tax money landing in a Roth is a conversion, with the tax that comes with it. The IRS rollover chart shows every combination. One exception to watch: during the first two years you participate in a SIMPLE IRA, it can only move to another SIMPLE IRA. Moving it anywhere else counts as a withdrawal, with a 25% additional tax if you're under 59 1/2.

The Direct Route Keeps Taxes and Withholding Out of It

When money moves directly between institutions, there is no distribution to you, so there is nothing to withhold and no deadline to miss. The indirect route is where people get caught, for three reasons the IRS spells out on its rollover page:

• 20% withholding on 401(k) payouts. An employer plan that pays a distribution to you must withhold 20%, even if you plan to roll it over. To roll over the full amount, you have to make up that 20% from other savings within 60 days. Whatever you don't replace is generally taxed, and may carry the 10% early withdrawal penalty if you're under 59 1/2.
• The 60-day clock. Miss it, and the distribution is generally taxable.
• One indirect IRA rollover per 12 months. This limit counts all of your IRAs together. It does not apply to trustee-to-trustee transfers, to rollovers from a 401(k) into an IRA, or to conversions.

Selling investments to cash inside your old IRA, if your provider requires it before the move, is generally not a taxable event either. As a general rule, buying and selling inside an IRA does not trigger capital gains tax in the year of the trade. Tax rules depend on your situation, so check the plan for your accounts with your tax advisor before you start.

If you're still working for the employer that sponsors your 401(k), the plan may not allow a rollover until you leave. The IRS notes that you have to meet the plan's own conditions for a distribution, such as leaving the job. Your plan administrator can tell you what applies.

Moving Your Retirement Account to Onramp, Step by Step

1. Write down what you have. Note the account type (Traditional, Roth, SEP, SIMPLE, pre-tax 401(k), or Roth 401(k)), the provider, and what the account holds today: cash, funds, bitcoin ETF shares, or bitcoin. The type decides which Onramp IRA you open. The holdings decide whether the money can move as bitcoin or has to move as cash. Onramp also accepts moves from 457(b) plans, the Thrift Savings Plan and inherited IRAs.
2. Ask your old provider how it releases assets. Ask whether it can send bitcoin in kind or only cash, which forms it needs from you, how it signs off on a transfer, whether it pays by check or electronically, and what it charges to close or transfer the account. The next section covers what to expect.
3. Open your Onramp Bitcoin IRA. Schedule a consultation or start from the IRA page. First complete Heritage IRA's online form, which takes 5 to 10 minutes, then Onramp's onboarding with identity verification. Once both are done, the Onramp team adds the IRA to your account and sends you the transfer paperwork to sign by DocuSign. Match the IRA type to the account you're moving.
4. Request the move. For an IRA, whether it moves as cash or as bitcoin, Onramp sends the transfer paperwork to your old provider, and the provider contacts you to confirm. You don't have to call them. If your provider supports in-kind transfers, bitcoin moves directly without being sold, usually starting with a small test transfer. For a 401(k), Onramp helps with the paperwork, but depending on the plan, you may need to request the direct rollover from your plan administrator yourself.
5. Handle anything your old provider sends you. Checks go straight to Heritage IRA when possible, and the mailing address is on the transfer paperwork. If the plan mails the check to you instead, made payable to your new IRA, forward it to that address. If a check arrives payable to you instead, the IRS treats it as a distribution: 20% has already been withheld, and the 60-day clock has started.
6. Buy bitcoin once the money arrives. When cash settles in your IRA, you allocate it to bitcoin directly through Onramp, and it lands in your IRA's Multi-Institution Custody vault. Bitcoin moved in kind arrives as bitcoin and skips this step.
7. Check the account and name your beneficiaries. Your IRA appears in your Onramp dashboard alongside any other Onramp accounts, with your balance, transaction history, and statements. You can designate beneficiaries up front in your account.

What Your Old Provider May Ask For

The slowest part of most moves sits with the provider you're leaving, not the one you're joining. Its requirements are its own, and they vary widely. Four come up often.

A sale to cash. Many providers can only send cash. Bitcoin ETF shares can't be delivered as bitcoin, so they're sold first, and some bitcoin IRA providers don't support in-kind transfers either. Selling and repurchasing leaves a short window with no bitcoin exposure while the cash travels. If your provider can send bitcoin in kind, Onramp can receive it, and you stay in bitcoin the whole time.

A medallion signature guarantee. Some firms want a medallion stamp on the transfer form before they release assets. It's a guarantee from a participating bank, credit union, or brokerage that the signature is yours, and it's different from a notary stamp. Your own bank or brokerage is usually the place to get one, so ask early, because not every branch offers it. This is only ever the old firm's requirement: Heritage IRA doesn't require a medallion signature guarantee.

An original signature or paper form. Some providers won't accept an electronic signature on a transfer request and want a signed paper form instead.

A mailed check. Plenty of 401(k) plans still pay a direct rollover by paper check, made payable to the new IRA. The IRS treats this as a direct rollover as long as the check is payable to the receiving account, so no tax is withheld. It does add mailing time.

Your old provider may also charge an account closing or transfer-out fee. Onramp doesn't add one: there are no fees for IRA transfers or onboarding through Onramp and Heritage IRA.

How Long the Move Takes

Most clients complete the full IRA setup within 5 to 7 business days, and the transfer itself usually takes 1 to 2 weeks. Three things change that: how quickly you complete the documents, how quickly the funding transfer arrives, and which methods your old provider can use to send the money. A provider that sells to cash, requires a paper form, or mails a check adds days at each of those points, and none of it is in Onramp's control. Starting the conversation with your old provider at the same time you open your Onramp IRA saves the most time.

Once the money arrives, your IRA balance, transaction history, and statements are in your Onramp dashboard. A transfer in progress doesn't show in the dashboard, so your Onramp team updates you whenever there's news on timing.

Required Minimum Distributions and the Move

From age 73, Traditional, SEP, and SIMPLE IRAs, and most 401(k)s, require a minimum withdrawal each year, set by the IRS from your prior year-end balance. For an IRA-to-IRA transfer, you don't have to take the year's RMD at your old provider before the move. Once your IRA is at Onramp, Heritage IRA calculates your RMD, lets you know, and pays it in cash. A 401(k) is different: a required minimum distribution can't be rolled over, so the year's RMD comes out of the plan before the rollover. Roth IRAs and designated Roth accounts in a 401(k) have no required distributions during the owner's lifetime.

If you've reached RMD age, plan the timing of this year's withdrawal with your tax advisor before you move the account. The IRS RMD page has the details. What happens at the other end of the account's life is covered in What Happens to a Bitcoin IRA When You Die?

Where Your Retirement Bitcoin Sits at Onramp

Onramp IRAs are offered in partnership with Heritage IRA Inc., which handles the IRA's compliance, reporting, and record keeping. Onramp handles your onboarding, withdrawal processing, and your account dashboard. The bitcoin itself sits in Multi-Institution Custody, in a segregated wallet you can verify on-chain.

Three institutions protect your bitcoin. No one of them can lose it, move it, or use it, and nothing moves without your permission. Multi-institution custody works like a bank vault that needs two keyholders to open: it takes two of the three (Onramp, BitGo, and CoinCover) to move your bitcoin. For a retirement account you may hold for decades, that means no hardware wallets, seed phrases, backups, or PINs to manage. Should You Use Multi-Institution Custody for a Bitcoin IRA? covers the tradeoffs, and The Four Ways to Hold Bitcoin in an IRA compares the alternatives.

A Bitcoin IRA is included with an Onramp Core account at no additional cost. You can also open an Onramp Bitcoin IRA on its own for $100 a month or $1,000 a year. One-time bitcoin purchases inside the IRA carry a 0.65% trade fee plus the spread, and recurring buys are free. To see what the tax wrapper could be worth on your own numbers, try the Bitcoin IRA calculator.

FAQ

Is rolling a 401(k) into a Bitcoin IRA taxable?

Generally not, if you use a direct rollover into the same type of account: pre-tax into a Traditional IRA, or a Roth 401(k) into a Roth IRA. Nothing is withheld and no tax is due on the move. Moving pre-tax money into a Roth IRA is a conversion, and the converted amount counts as taxable income. Check your situation with a tax advisor.

What's the difference between an IRA transfer and a rollover?

A transfer moves money directly from one IRA to another, institution to institution, with no withholding and no limit on how often. A rollover moves money from an employer plan such as a 401(k), either directly to your IRA or paid to you first. If it's paid to you, you have 60 days to deposit it, and a 401(k) withholds 20% up front.

Can I move bitcoin I already hold in an IRA without selling it?

Yes, if your current provider supports in-kind transfers. The bitcoin moves directly into your Onramp IRA without being sold and repurchased, usually after a small test transfer, and Onramp sends the transfer paperwork to your old provider. If your provider only sends cash, or you hold bitcoin ETF shares, the position is sold first and you buy bitcoin again once the cash arrives.

Who contacts my old provider?

For any IRA transfer, cash or bitcoin, Onramp sends the transfer paperwork to your old provider, and the provider contacts you to confirm. For a 401(k), Onramp helps with the paperwork, and depending on the plan, you may need to request the direct rollover from your plan administrator. Either way, ask your old provider early what forms and signatures it requires.

How long does it take to move an IRA or 401(k) to Onramp?

Most clients complete the full IRA setup within 5 to 7 business days, and the transfer itself usually takes 1 to 2 weeks. The biggest variable is the provider you're leaving: a required sale to cash, a paper form, a medallion signature, or a mailed check each adds time. Your balance, transaction history, and statements appear in your Onramp dashboard.

Do I have to take my RMD before I move my IRA?

Not for an IRA-to-IRA transfer. Once your IRA is at Onramp, Heritage IRA calculates the RMD, lets you know, and pays it in cash. For a 401(k), the year's RMD can't be rolled over, so it comes out of the plan before the rollover. Roth IRAs have no required distributions during your lifetime. Plan the timing with your tax advisor.

Can I move bitcoin I already own into my IRA?

No. IRA contributions have to be made in cash. Only bitcoin that's already held in an IRA can move into your Onramp IRA in kind.

Related reading

• Bitcoin IRA: The Complete Guide to Holding Bitcoin in a Retirement Account
• What Is a Self-Directed IRA Custodian? (And How to Choose One for Bitcoin)
• Should You Use Multi-Institution Custody for a Bitcoin IRA?
• How Onramp Withdrawals Work and How Long They Take
• Holding Bitcoin in a Revocable Living Trust, Step by Step
• Onramp's IRA questions in the Help Center

This article is for educational purposes and is not investment, tax, or legal advice. Tax rules described are federal, current as of October 2026, and subject to change. Consult your own tax advisor before moving a retirement account.