Quick answer. Recurring asset-based fees reduce the capital available to compound. Trading spreads, account maintenance, storage, transfers and closure fees can also matter. Compare fees in dollars over the same holding period, not just headline percentages.
Why this matters
A retirement-account decision can affect taxes, liquidity, custody, fees and the ability to change providers. Understanding the mechanics comes before deciding whether digital assets belong in an IRA.
Worked example
At a constant hypothetical 6% gross annual return, a $50,000 balance held 20 years with no contributions grows to about $160,357 without fees. Applying a 1% annual asset fee after the return produces about $131,157. This is an illustration, not a forecast.
Questions to ask before acting
- What account or plan type do I have today?
- What are the full dollar costs, including less visible fees?
- What tax or distribution consequences could apply?
- Which entity is responsible for custody and account records?
- Can I reverse or change the decision, and what will that cost?
Important limitation
Cryptocurrency returns are highly volatile; constant-return examples do not represent realistic paths.
Related resources
Primary reference
Educational information only. Not individualized tax, legal or investment advice.