Bitwage today announced a partnership with ForUsAll to offer the “first-ever one-stop-shop for cryptocurrency 401k combined with cryptocurrency payroll.”
The San Francisco-based provider of bitcoin and cryptocurrency payroll, invoicing and benefits solutions said the decision to introduce these products was based on overwhelming demand from customers, which was measured by a waitlist posted by Bitwage. It was clear that companies and employees desired direct access to Bitcoin and other cryptocurrencies as part of their company-sponsored retirement plans.
Through Bitwage’s integration with ForUsAll—a modern 401k provider that provides access to crypto, financial wellness, low fees and more—companies across the U.S. now have access to what Bitwage says is an “easy-to-use, fully compliant 401k retirement plan” that enables employees to automatically contribute a portion of their paycheck to crypto via ForUsAll’s self-directed crypto window.
“Our goal is to provide a complete crypto payroll and benefits suite for employers and their workforce.”
Bitwage CEO Jonathan Chester
“Our goal is to provide a complete crypto payroll and benefits suite for employers and their workforce,” said Bitwage CEO Jonathan Chester. “ForUsAll is one of the most seamless and compliant services on the market. Together, we create a one-stop-shop of crypto benefits and services that can scale to thousands of employees.”
Crypto contributions in the 401k can be made on a pre-tax or post-tax (Roth) basis. This can result in increased tax savings for users, because cryptocurrency held or traded in a Roth 401k account would accrue zero capital gains taxes, no matter how much the balance increases by the time an investor retires.
ForUsAll’s 401k platform—called Alt401(k)—was especially compelling for Bitwage due to its robustness. Through the Alt401(k), employers have the choice to include cryptocurrency via a self-directed alt window inside the 401k alongside their investment lineup. From there, participants are able to transfer up to 5% of their portfolio into a cryptocurrency window where they can invest in a range of vetted institutional quality cryptocurrencies. ForUsAll closely monitors allocations, alerting employees when their overall cryptocurrency allocation exceeds 5% of their portfolio, making it easy to rebalance.
Other key features of the ForUsAll Alt401(k) include:
- A full turnkey automated 401k for employers, with both traditional and alternative investment options
- Employees can transfer up to 5% of their balances into a secure account that has exposure to certain cryptocurrencies
- Employees will be able to buy, hold, and sell a curated list of highly vetted, institutional-quality cryptocurrencies
- Employees will get ongoing portfolio monitoring and education
“This exciting partnership represents a natural progression in our mission to provide our customers with the very best, cutting-edge digital asset benefits,” Chester said.
Notably, earlier this year ForUsAll filed the first legal challenge to the Department of Labor’s controversial cryptocurrency in retirement plans guidance released in March, alleging that the guidance is “arbitrary and capricious” and violated the Administrative Procedure Act.
Despite the Labor Department filing a motion to dismiss the case in early September, the case is still pending.
SEE ALSO:
• DOL Sued for Attempting to Ban Crypto in 401ks
• Fidelity’s ‘Bitcoin-in-401ks’ Plan Moving Forward Despite Questions from Senators
• New ‘Alt 401(k)’ to Provide Retirement Plan Cryptocurrency Access
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
