Even if two IRA wrappers have similar tax rules, the real difference often lies in cost: custodial fees, auditing charges, transfer or trading spreads, valuation fees, and blockchain transaction costs. For crypto IRAs, these “hidden” costs can erode returns faster than taxation.
Some wrappers, especially more complex ones (self-directed, Roth with crypto), attract higher audit, custody, or compliance overhead. Those costs may manifest as flat fees, per-transaction charges, or percentage-based custody fees. If you choose a wrapper that imposes heavier overhead, your net returns shrink.
Additionally, some custodians handle crypto differently depending on wrapper — e.g. higher spread or audit fees when dealing under Roth rules. The comparative cost breakdowns in “Choosing the Right IRA Wrapper for Digital Assets” help you estimate how costs will differ per wrapper.
Before selecting a wrapper, map out all plausible cost categories and apply them over your expected investment horizon. Sometimes a “cheaper” wrapper in appearance ends up being more expensive due to cumulative fees. Use the guide’s comparisons to avoid cost surprises.