How Can I use local /etc/passwd users for 802.1x authentication

Hello ; I need authenticate local /etc/passwd users with FreeRadius for wired and wireless network 802.1x authentication ? Is it posible ? Or i can migrate all local users to ldap server in this case is it posible ? Because i dare say 802.1x authentication not correctly work with encrypted password on ldap ? Could You please give information about this issue ? Thank You, Akocak.