You will need a prototype plan sponsor to provide k documents preapproved by the IRS. That means someone must hold the password for the wallet, which could be the plan sponsor or their selected recordkeeping service provider. While a small exposure to Bitcoins for over the long-term via these self-directed IRAs can be a rewarding bet, investors must consider the speculative nature of bitcoins; rules and penalties that apply to self-directed IRAs; as well as the evolving nature of regulations towards virtual currencies before taking a plunge. It follows the ideas set out in a whitepaper by the mysterious Satoshi Nakamoto, whose true identity has yet to be verified. Your Money.