Bitcoin in Your Retirement Benefits? ForUsAll and Coinbase Launch Crypto 401(K) Alternative
On Monday, June 9, 2021, ForUsAll, a San-Francisco-based retirement plan provider SMEs has disclosed that crypto investors can now earn tax breaks from their crypto-asset investments by leveraging on the company’s alternative 401(k) investment option.
Forusall Partners with Coinbase to Provide Crypto-Asset Retirement Benefits
According to the company, it provides retirement plans for more than 71,000 employees from various companies. Towards the end of 2019, the company was managing employees’ assets worth about $1 billion. ForUsAll’s crypto-asset portfolio applies to its Alt 401(k) product and leverages real estate, mutual funds, and environmentally focused funds.
While making the announcement, Jeff Schulte (ForUsAll’s CEO) stated that “most Americans deserve access to investment alternatives only regarded for wealthy or professional investors, and they’ve been deprived of this access for far too long. Hence, our main objective at ForUsAll is to equip any interested American with the right tools, especially these investment alternatives for them to create their desired future.”
ForUsAll’s website also noted increasing interest in this virtual asset class, with more than 65% of traditional investors believing in this new investment alternative.
ForUsAll Users Have the Option of Adding 5% of Their Portfolio to The Crypto Option
Per the announcement, ForUsAll users can only add 5% of the portfolio into this crypto investment option. Also, users can invest in any of the available 50 different crypto assets based on the agreement terms between ForUsAll and Coinbase. Part of the 50 digital tokens includes Algorand, Uniswap, and other exotic crypto assets in the decentralized finance (Defi) world.
The company also revealed a team from its employees would be in charge of these crypto allocations, and employees are allowed to switch their portfolios around their various crypto assets. But Coinbase will secure and manage all these crypto assets.
Present at the announcement was brett Tejpaul, Coinbase’s head of its institutional crypto arm. He disclosed that this new ForUsAll retirement plan would give an extra advantage to employees who had long desired to invest in the booming crypto space.
Tejpaul further said, “our original aim of creating an institutional arm was to make cryptocurrency strictly for rich investors and traditional investors, but we are now expanding this service to ForUsAll’s users since they are an acknowledged leader in the 401(k) space.”
Other Crypto-Based Retirement Plan Providers
Before ForUsAll launched its crypto-asset retirement plan, digital asset investment management (DAIM), a US-based firm, was the first to launch a crypto-related retirement plan late last year. This company’s 401(k) allows users to apportion up to 10% of their funds into bitcoin through Gemini trust, an institutional-grade custodian. Gemini is also in partnership with Bitwage, a payroll and hr service company, to offer their users bitcoin investment opportunities whether using their pre-tax or post-tax dollars.
The popularity of this offer may encourage other top guns in this industry, such as Schwab and Fidelity, to toe the line of ForUsAll. This ForUsAll plan shows that lots of Americans won’t mind investing in legitimate crypto-asset offerings.
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