Digital Asset Investment Management DAiM has reportedly made the first employer-sponsored retirement plans across the US available, which come with facilitating features for Bitcoin.
Specifically, DAiM will reportedly take up the advisor and fiduciary role, in assisting firms with establishing “a 401(k) plan that offers several recommended model portfolios of varying risk to traditional assets and allocation of up to 10% to Bitcoin.”
The BTC will reportedly be safely kept in a Gemini Trust cold storage, giving DAiM the ability to send Bitcoin to former-employees who have departed their firms.
DAiM’s pro-crypto plans will reportedly be in compliance with the Employee Retirement Income Security Act of 1974, where it will be available for employers to use, starting 2021.
Despite the fact that Americans have been equipped with the selection of including crypto assets in their personal retirement accounts, 401(k) rollovers, and brokerage accounts since the Internal Revenue Service starting applying tax on Bitcoin 2 years ago, DAiM COO Adam Pokornicky reportedly revealed that “offering Bitcoin inside actually company-based plans” has not been able to be carried out until this latest development.
“The difference is, you can take an old 401k plan and convert it to an IRA when you leave a job or employer to invest in Bitcoin, but it’s never been possible to invest in Bitcoin while working at a company without taking a penalty or quitting your job until now.“ Pokornicky further remarked.
Per Pokornicky, the traditional wealth management sectors have reportedly been “slow to warm up to Bitcoin”, highlighting the lack of investment advisors offering licensed and regulated access to Bitcoin directly in brokerage and retirement accounts.”