Digital Asset Investment Management or US-based asset manager DAiM launched the country’s first 401K retirement plans to support Bitcoin (BTC).
According to an announcement made on November 19 DAiM will act as advisor and trustee to help companies “create a 401 (k) plan that offers multiple recommended portfolios with variable risk models for traditional assets and an allocation of up to 10% to Bitcoin”.
Gemini Trust stores the BTC offlineThis allows DAiM to transfer Bitcoin to former employees who have left the participating companies.
DAiM’s cryptocurrency plans are compliant with the Employee Retirement Income Security Act of 1974and can be offered by employers from 2021.
Although U.S. residents have been able to add crypto assets to their individual retirement accounts, 401K rollover and brokerage accounts since the Internal Revenue Service began taxing Bitcoin in 2018. Adam Pokornicky, COO of DAiM, told Cointelegraph, “Until now, it has been impossible to offer Bitcoin as part of truly business-related plans.”
“The difference is that if you leave a job or employer to invest in Bitcoin, you can turn an old 401K plan into an IRA. However, until now, it has never been possible to invest in Bitcoin while working in a company without paying a fine. or stop working. “
Pokornicky said the traditional wealth management industries “have been slow to react in favor of Bitcoin,” and noted it “There are hardly any investment advisors who offer licensed and regulated access to Bitcoin directly to broker and retirement accounts.”
He attributes the reluctance of the industry to the “serious regulatory requirements” in connection with compliance with cryptocurrencies. This underscores that it took “almost a full year of slow construction” for DAiM to be approved to offer its employer-sponsored services:
“As a consultant, you cannot manage and advise Bitcoin because you want to. A tremendous amount of work and compliance has to go into developing the operational framework, infrastructure, and strategic partnerships that must come together to produce results in every state they operate in. “
Pokornicky also noted the “boom” in demand for retirement investments in Bitcoin, adding, “We have seen the highest demand from people between the ages of 28 and 45.”
Don’t stop reading: