On Monday, Forusall, a retirement plan provider for small and medium-sized businesses based in San Francisco, announced the launch of an alternative 401(k) plan that provides cryptocurrency access within the plan. Under the alt 401(k) investment option, Forusall is working with Coinbase Institutional as its retirement plan partner.
Institutions of Forusall and Coinbase provide crypto-injected Alt 401(k) plans
Forusall, a “one-click” retirement service provider established in 2012, revealed that digital currency investors can now take advantage of the company’s alternative 401(k) investment option in order to obtain tax benefits from crypto asset investments.
Forusall claims to manage plans for more than 600,000 employees from companies such as Target, Coca-Cola and Citigroup. As of November 2019, Forusall advises employees with assets of more than $1 billion. The company’s focus on crypto assets applies to alt 401(k) products, which can also utilize environmentally-focused funds, mutual funds, and real estate.
“For a long time, too many Americans have been unable to obtain alternative investments like wealthy professional investors. Our mission is to provide every American with the tools needed to build a brighter financial future, and making these alternatives more accessible is to achieve. A key step in this goal,” Forusall CEO Jeff Schulte explained in the announcement.
The company’s website also mentions the growing interest in crypto assets and emphasizes that 60% of institutional investors believe in investing in crypto assets. “Six out of ten institutional investors believe that digital assets have a place in their portfolios, and 36% of institutional investors are already using it,” the Forusall website states.
The Alt 401(k) plan provides a 5% distribution and can choose between 50 crypto assets
Forusall’s announcement on Monday detailed that employers can choose to add encryption options, and employees can directly use 5% of their investment portfolio for digital assets. The program works with Coinbase Institutional, so employees using Forusall’s alt 401(k) investment option can choose from 50 unique crypto assets. The retirement plan provider further stated that the company monitors the distribution of cryptocurrencies and employees can rebalance their investment portfolios into different assets at any time.
In Forusall’s alt 401(k) announcement, Brett Tejpaul, the head of the crypto department at Coinbase, explained that the expansion of digital assets into mainstream retirement plans will expand the competitive environment.
“When we created our institutional platform, our initial focus was to make cryptocurrencies available to institutional investors and high-net-worth individuals,” Tejpaul said. “The next development is to expand our reach. We are very happy to cooperate with the leading 401k technology platform Forusall to expand access to cryptocurrencies through 401ks.”
Forusall’s alt 401(k) option is not the first retirement plan to add crypto assets to the competition. The US-based digital asset investment management company (Daim) revealed in November 2020 that it offers a company-sponsored 401(k) retirement plan. Daim’s products distribute up to 10% of Bitcoin through the institutional-level custodian Gemini Trust. The New York-based Gemini company has also partnered with Bitwage to enable employees to invest their pre- and after-tax dollars in Bitcoin (BTC).
What do you think of Forusall’s alt 401(k) investment option, which allows 5% of funds to be allocated to cryptocurrencies through Coinbase? Please tell us your thoughts on this topic in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons, Forusall
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