There is no IRS guidance on cold wallets. We recommend leaving your crypto on the exchange.
Where should I hold my accounts on an exchange?
We recommend IRA LLC or Solo 401(k) account holders open exchange accounts at a place that registers retirement accounts through entity signup, allows for a W9 form to be submitted, and keeps their crypto in the centralized exchange accounts hot or cold storage. See our instructions here for Coinbase or here for Gemini. We also have instructions for ErisX and River Financial
What if I don't want to hold it on an exchange?
Storing crypto held in an IRA or Solo 401(k) in a cold wallet is fine if the wallet is held by a custodian, a non-bank custodian, or in a bank safe deposit box registered to the IRA LLC or the Solo 401(k) plan. Rocket Dollar does not offer a cold storage option.
Storing hardware or a cold wallet at home may be a prohibited transaction and you risk penalties and fines. We recommend leaving the crypto on the exchange.
What if I would like to know more?
We have had two advanced crypto webinars that extensively covered currently known regulations and how crypto wallets, hot wallets, and cold wallets could be impacted. We would suggest reviewing the second half of them for general information and their section on cold and hardware wallets. Rocket Dollar cannot give tax advice.
Webinar with exchange ErisX - Crypto for Self Directed IRAs