Under Trump's policy support, alternative assets such as Bitcoin officially entered 401(k) and IRA accounts.

Written by: Forbes

Translated by: AididiaoJP, Foresight News

The U.S. pension system, with a scale of $49.1 trillion, is the largest savings pool for the general public. Now, cryptocurrencies are forcefully cutting into this field through Self-Directed IRAs. A leading self-directed custodian recently launched a new platform that allows investors to trade nearly 100 cryptocurrencies in real-time within the same account while holding assets such as stocks, real estate, gold, and private equity.

Note: A Self-Directed IRA is a special type of Individual Retirement Account (IRA) that allows account holders to decide and control the direction of their investments themselves, unlike traditional IRAs which are restricted to conventional financial products such as stocks, bonds, mutual funds, or ETFs. In simple terms, it gives you greater investment freedom, allowing retirement funds to be allocated to more "alternative assets."

Adam Bergman, founder and head of IRA Financial, candidly stated in a podcast: "Most Americans have been brainwashed by large financial institutions to believe that you can only invest in traditional assets within an IRA or 401(k). But that hasn’t been the case for the past 50 years." He pointed out that really wealthy individuals do not simply rely on holding stocks but achieve wealth surges through alternative investments such as private assets, private equity, hedge funds, and Bitcoin. "We’ve all been fooled."

Bergman emphasized that over-concentration on the S&P 500 or mutual funds and ETFs does not genuinely diversify risk, as it may only correspond to holding stocks of seven large companies. The biggest advantage of retirement accounts is that funds can grow tax-free, which is the key attraction for alternative assets like cryptocurrencies to enter this market.

The Policy Door is Open

For a long time, large institutions such as Fidelity and Schwab have been accused of "building walls" to block alternative assets from entering retirement accounts. Bergman expresses discontent: "They claim these assets are too risky, but that's just because they can't make money off them—when customers buy real estate or gold, they cannot charge asset-based management fees."

However, the regulatory winds are shifting. In March 2022, the U.S. Department of Labor required 401(k) fiduciaries to be "extremely cautious" when offering cryptocurrency options; this guideline was rescinded on May 28, 2025. Just ten weeks later, President Trump signed an executive order titled "Democratizing Access to Alternative Assets for 401(k) Investors," clearly instructing regulators to pave the way for private equity, real estate, and digital assets in workplace retirement plans. The upcoming Generation Z, which is set to inherit about $15 trillion in wealth, has more trust in cryptocurrencies than traditional banks, and they will soon see Bitcoin in their retirement portfolios.

One Account, One Fee: A True All-Asset Platform

IRA Financial's new platform enables commission-free trading of stocks, ETFs, and mutual funds via Interactive Brokers; cryptocurrency transactions are completed through Bitstamp and Robinhood, with a maximum commission of about 1% on the buying side, and no holding fees. Real estate, hard money loans, private equity, and precious metals are all placed under the same account, with an annual fee of less than $500.

"We are the only institution in the country that allows stocks, Bitcoin, and real estate to all be under one platform with a single low flat fee," said Bergman, "You can’t do that at Vanguard, Schwab, or Fidelity." Although competitors like iTrustCapital and Alto also offer cryptocurrency trading within IRAs, it is still rare to seamlessly integrate multiple asset types without charging asset-based management fees.

Bergman vehemently opposes the industry-standard asset-based fee model: "That's just criminal. Why should I profit from your intelligent investment? Just charge me a management fee, don't penalize you for performing well."

A Tax Attorney Betting on Bitcoin

Bergman was a tax attorney in New York, who quit in 2008 to start his own company from scratch, not taking a salary for the first five years. In 2015, despite financial advisors' opposition, he bought his first Bitcoin. "The advisors said I was crazy, Bitcoin was a scam. I thought, I'm only in my 40s, I have 20-30 years, it's not a big deal if I lose." He stated that all decisions revolve around risk and return. IRA Financial was also one of the first institutions to allow retirement accounts to hold Bitcoin.

He particularly mentioned Peter Thiel's Roth IRA: According to a 2021 ProPublica report, that account started in 1999 with founder shares at less than $2,000, and by the end of 2019, it had increased to around $5 billion, entirely tax-free. "I admire Thiel," Bergman said.

Risk Warnings Cannot Be Ignored

Self-Directed IRAs are not without risks. Renowned IRA expert Ed Slott describes these accounts as "You can only rely on yourself." The SEC, FINRA, and NASAA have all warned that self-directed accounts provide broader but potentially riskier investment options, and custodians will not review the assets purchased by clients.

IRA Financial itself has suffered severe setbacks: In February 2022, hackers exploited a master API key to steal about $36 million in Bitcoin and Ethereum from customer accounts custodied at Gemini, with the funds subsequently mixed through Tornado Cash. This incident highlighted the concentration risk of custodians—similar issues now plague the spot Bitcoin ETF market, where most assets are concentrated in a single custodian.

Worse still, if investors hold the private keys of cryptocurrencies in their IRA themselves, the entire account could lose its eligibility, turning decades of tax benefits into taxable events in an instant.

Despite this, Bergman himself allocates 50%-60% of his funds to alternative assets and is writing a book to argue that the wealthy operate this way. "There’s no reason I can’t buy real estate or gold in an IRA at Vanguard, Schwab, or Fidelity. What right do big banks have to block me?" He spent 16 years building this platform.

Conclusion

As policies relax and technology platforms mature, cryptocurrencies are entering the mainstream U.S. retirement savings system in unprecedented ways. Bergman's views are radical yet hit the nail on the head: traditional financial institutions have long restricted ordinary people's wealth choices, while alternative assets may indeed be the key to widening the wealth gap. But risks and opportunities coexist, and investors need to fully assess the complexity and potential pitfalls of self-directed accounts while pursuing high returns.

Cryptocurrency investment and retirement planning are highly personalized, so it is recommended to consult professional tax and financial advisors before making cautious decisions.