ForUsAll, a San Francisco-based retirement investment platform, announced today the roll-out of a new product that will allow employers to offer workers exposure to cryptocurrencies as part of their 401k plan.
Rather than sticking with exposure to traditional assets, the new Alt-401k being launched by ForUsAll will allow employees to transfer up to 5% of their balance to a dedicated cryptocurrency account. The account can include exposure to up to 50 cryptocurrencies, with Coinbase being the official partner for the product.
In the coming months, ForUsAll also hopes to offer employees exposure beyond cryptocurrencies, with a separate Alt-401k for real estate expected to launch soon. The investment platform also includes Mutual Funds and ESG Funds among its offerings and manages over $1.1 billion in assets.
Speaking about their latest product, CEO Jeff Schulte highlighted how technology is leveling the playing field and allowing retail investors to enjoy access to the same alternative investment products that “wealthy and professional investors have had.”
“Our mission is to provide every American with the tools necessary to build a brighter financial future, and making these alternatives more readily available is a key step towards that,” He added.
Capital allocation to cryptocurrencies and other alternative assets is fast becoming a trend, with the lure of doing so through a 401k account remaining one of the most in-demand products from retail investors. Savings in a 401k are usually automated, and require little to no active management from account holders.
Like a traditional 401k, employees who choose the ForUsAll Crypto 401k can enjoy greater tax efficiency since taxes will only apply when they liquidate their account, or in some cases their profits might be tax-free via a Roth individual retirement account.
Holders also do not need to worry about securing their digital wallet or private keys, as this will be cared for by ForUsAll and its official partner, Coinbase. With such a more consumer-friendly approach, everyday employees would be given an opportunity for risk-assessed exposure to the $2 trillion cryptocurrency market.
