The US-based Asset Manager, Digital Asset Investment Administration, or DAiM, launched the country’s first employer-sponsored 401K retirement plan that supports Bitcoin (BTC).

According to the November 19 announcement, DAiM will act as a consultant and manager, to help companies “create a 401 (k) plan that offers several recommended model portfolios with varying risks for conventional assets and allocations of up to 10% in Bitcoin.”

The BTC will be stored in the Gemini Trust cold storage so that DAiM can transfer bitcoins to former employees who have left participating companies.

DAiM’s crypto-friendly plans are in line with the Employee Retirement Benefits Act 1974 and will be introduced by employers starting 2021.

While US citizens can include cryptocurrencies in their standalone, selling and brokerage accounts 401K since the IRS began taxing bitcoins in 2018, Adam Bukornicki, CEO of DAiM told Cointelegraph: ‘It really wasn’t possible to provide Bitcoin internally, and corporate plans so far. ”

The difference is that you can take the old 401K plan and convert it into an IRA when you leave your job or business owner to invest in bitcoins but never have the opportunity to invest in bitcoin while working for a company without any penalty or termination. From work so far. ”
Pokornicki said traditional wealth management industries are “slowly heating up to bitcoin,” noting that “there are almost no investment advisors offering authorized and regulated access to bitcoin directly into brokerage and retirement accounts.

He attributed the sector’s reluctance to “serious administrative bureaucracy” about compliance with digital currencies, asserting that it took “nearly a full year of slow construction” before DAiM was approved for employer-sponsored services:

As a consultant, you can’t just start playing Bitcoin and advise it because you want it. There is a tremendous amount of work and compliance involved in developing the operational structures, infrastructure, and strategic partnerships that must be incorporated to be compatible in every state in which it operates.
Bukornicki also noted the “growing” demand for retirement investments in Bitcoin, adding, “We are seeing the largest demand from people between the ages of 28 and 45.”

Source: CoinTelegraph

LEAVE A REPLY