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401(k) Platform Teams With Coinbase to Offer Crypto in Retirement Plans

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What You Need to Know

  • Workers can transfer up to 5% of their account balances into a self-directed cryptocurrency window.
  • ForUsAll works with hundreds of plan sponsors and tens of thousands of participants.
  • Employees will be able to buy, hold and sell over 50 different cryptocurrencies.

ForUsAll, a retirement investment platform for small businesses, recently announced that it has teamed with Coinbase Institutional to offer the Alt 401(k), ForUsAll’s retirement investment platform that allows employers to provide alternative investment options within 401(k) plans.

“For too long, too many Americans haven’t had the same access to alternative investments that wealthy and professional investors have had,” said Jeff Schulte, CEO of ForUsAll, Monday in a statement.

“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. By introducing the Alt 401(k), we are democratizing access to what drives wealth for the wealthy — alternative investment options, combined with our original core offering of low-cost index funds, and personalized help,” Schulte said.

Key features of the Alt 401(k) include:

  • A full turnkey automated 401(k) for employers, with both traditional and alternative investment options;
  • Employees can transfer up to 5% of their balances into a secure account that has exposure to certain cryptocurrencies;
  • Employees will be able to buy, hold and sell over 50 different cryptocurrencies; and
  • Employees will get ongoing portfolio monitoring and education.

The company says on its website that it works with “hundreds of plan sponsors and tens of thousands of participants.”

David Ramirez, co-founder, and CIO of ForUsAll, told ThinkAdvisor Thursday in an email that “The first plan sponsors will go live in July.”

In a statement shared with ThinkAdvisor on Thursday, Brett Tejpaul, head of Institutional Sales, Trading and Prime at Coinbase, said that “When we created our institutional platform our initial focus was making cryptocurrency accessible to institutional investors and high-net-worth individuals. The next evolution is to broaden our reach, and we are thrilled to be working with ForUsAll, the leading 401(k) technology platform, to expand access to cryptocurrency through 401(k)s.”

How It Works

ForUsAll explained that with the Alt 401(k), employers now have the choice to include cryptocurrency via a self-directed alt window inside the 401(k) alongside their investment lineup.

Participants are then able to transfer up to 5% of their portfolio into a cryptocurrency window where they can invest in over 50 cryptocurrencies.

“ForUsAll closely monitors allocations, alerting employees when their overall cryptocurrency allocation exceeds 5% of their portfolio, making it easy to rebalance into more traditional mutual funds,” the firm said.

Ramirez added in a statement that “the reality is that alternative asset classes which increasingly include small allocations to cryptocurrency have become an important part of many institutional portfolios. Without access to these portfolio building blocks and expert help to prudently use these asset classes, the average American may be at a structural disadvantage. Alternative investments, including small allocations to cryptocurrency can help improve portfolio diversification and expected returns. However, the volatility and the complexity of these asset classes make prudent education and advice for employees essential.”