US-based asset manager Digital Asset Investment Management (DAiM) has launched the first employer-sponsored 401 (k) retirement plans to support Bitcoin.

According to a November 19 AnnouncementDAiM will serve as the advisor and fiduciary in helping companies build “a 401 (k) plan that offers several recommended model portfolios with varying risk for traditional assets and an allocation of up to 10% to Bitcoin.”

The BTC is kept refrigerated by the Gemini Trust, allowing DAiM to transfer Bitcoin to former employees who have left the participating companies.

DAiM’s crypto-friendly plans are in line with the Employee Retirement Income Security Act of 1974 and will be available to employers from 2021.

While US citizens have been able to include crypto assets in their individual retirement accounts, 401 (k) rollovers and brokerage accounts since the Internal Revenue Service started taxing Bitcoin in 2018DAiM COO Adam Pokornicky told Cointelegraph, “It has been impossible until now to offer Bitcoin in actual company-based plans.”

The difference is that you can take an old 401k plan and convert it into an IRA when you leave a job or employer to invest in Bitcoin, but it has never been possible to invest in Bitcoin while working at a company without taking a fine or quitting your job so far. “

Pokornicky said the traditional wealth management industries are “slow to warm up to Bitcoin,” noting that “hardly any investment advisers provide licensed and regulated access to Bitcoin directly into brokerage and retirement accounts.”

He attributes the industry’s reluctance to “severe red tape” around cryptocurrency compliance, stressing that it took “nearly a full year of slow build-up” for DAiM to be approved to offer its employer-sponsored services:

“As an advisor, you can’t just start managing and advising Bitcoin just because you want to. There is a tremendous amount of work and compliance that must be done to develop operational frameworks, infrastructure, and strategic partnerships that must be married to be compliant in every state you operate in. “

Pokornicky also noted that the demand for retirement investments in Bitcoin is skyrocketing, adding, “We’ve seen the most demand from individuals between the ages of 28-45.”



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