Coinbase partners with 401(k) provider to offer crypto investments in retirement accounts
Coinbaseand 401(k) provider ForUsAllhave teamed up to allow workers to invest directly in cryptos within their retirement accounts.
- Investors whose employers use ForUsAll's crypto plan will be allowed to invest up to 5% of their 401(k) contributions in bitcoin, ether, and others.
- ForUsAll has $1.7 billion in retirement-plan assets, a small player in the $22 trillion retirement-account market.
Some people saving for retirement will now be able add cryptocurrencies to their 401(k) portfolio.ForUsAll, a 401(k) provider, is partnering with cryptocurrency exchange Coinbase to allow workers to invest up to 5% of their 401(k) contributions in bitcoin, ether, litecoin, and other coins, The Wall Street Journal first reported.
ForUsAll has 400 employer clients and only $1.7 billion in retirement-plan assets, making it a small player in the $22 trillion retirement-account market. However its embrace of crypto comes at a time of strong retail interest in digital assets.An infographic on the ForUsAll homepage notes the high returns that crypto investing has garnered:
"If you purchased $5K of Bitcoin in a $100k portfolio on 3/16/2020 at $4575.36 and then sold it on 3/14/2021 at $61,598.92, you would have $67,315 in the Alt401(k) vs. 43,754.64 in a taxable account. This assumes you used Roth contributions in the Alt401(k) and a tax rate of 35%. This example does not reflect account or transaction fees," the San, Francisco-based company said.
Bitcoin traded around $37,500 Thursday morning.
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