Gemini and Bitwage are unveiling a new 401K plan that’s centered around bitcoin.
Bitwage Is Bringing You a BTC 401K
This is more proof that bitcoin and its crypto cousins are becoming far more mainstream and legitimate. The idea of investing one’s retirement funds in crypto can be terribly tricky considering that digital assets are known for their volatility and for jumping up and down like rabbits during Easter. That, by itself, is something to be concerned about, but to put one’s retirement funds into crypto creates a whole other list of challenges.
Retirement money is what’s used when one has decided that they’re no longer going to work. These funds go towards ensuring one remains financially stable during what are often known to be financially unstable years. Often, the person in question requires more medical attention than when they were young. Medical bills may not be covered by Medicare or by the small medical accounts the person may hold, meaning they’ll often have to dig into their own pockets or their retirement funds to ensure bills are expunged.
The idea that one’s retirement funds are based on crypto and can thus disappear relatively quickly under the “right circumstances” is a scary thought. Either way, Bitwage is looking to deliver the service to its customers with help from the Gemini Exchange in New York, custodial service Kingdom Trust, and Leading Retirement Solutions, which keeps records of 401K activity with the Department of Labor and the Internal Revenue Service (IRS).
Despite the risk involved, this isn’t the first time such a service has been available. Bitcoin IRA ultimately introduced a similar program to its customers and built its entire platform on the idea that retirement money could be based in bitcoin. This suggests that retirees are perhaps much more interested in digital assets than originally thought.
Right now, Bitwage – a crypto payroll firm – is testing its new product with employees before it becomes available to other customers. The program is being rolled out through an employee pension account, while eventually, customers who meet a 75 percent payroll requirement in the federal Paycheck Protection Program (PPP) will gain access.
PPP has been a huge lifesaver for some during the growth of the coronavirus pandemic. Already, as much as $660 billion has been lent out to small businesses all over the United States with the help of the Small Business Administration (SBA).
Keeping People Financial Stable
To make things easier for struggling firms, the program offers complete loan forgiveness and flexible payment options granted money is tight and a business is spending at least 75 percent of its money on payroll expenses (meaning, most of the money goes towards paying employees).
Aside from crypto, Bitwage also allows its customers to invest retirement money in equities and bonds.