U.S. company, DAiM (Digital Asset Investment Management) the first Registered Investment Advisor for Bitcoin, announced their crypto-backed 401(k) retirement plans.
After being licensed in California in June 2018, DAiM saw an “…incredible inbound demand from individuals eager to invest Bitcoin in 401(k)s.” The IRS allows retirement plans to be used in the taxable investment of crypto once retirement funds are released. However, before DAiM it wasn’t possible to directly use Bitcoin as part of a 401(k) while still employed.
Over the past 2 years, DAiM has been working hard to make it easy for employers to offer Bitcoin retirement plans to their employees.
- Firstly, they complied with the Employee Retirement Income Security Act (ERISA) of 1974.
- Secondly, they found a long-term cold storage option using Gemini Trust. Funds get released once workers leave their initial company.
- Thirdly, they created several plans at varying risks that allows up to 10% of your salary to be allocated to Bitcoin.
In October of 2019, a single employee-sponsored plan was launched, followed by one year of testing. Now, several plans and strategies allow DAiM to act as a financial advisory and an administrative intermediary to small and large businesses and their employees.
Businesses can now switch their 401(k) plans or start new ones which will begin in 2021 if confirmed by mid-December of this year.