ForUsAll Partners With Coinbase To Introduce 'Alt 401k' Retirement Plans With Crypto

What Happened: ForUsAll, a San Francisco-based retirement plan provider, introduced an alternative 401(k) plan that provides in-plan access to cryptocurrency.

According to a report, the company, which manages $1.7 billion in AUM, will enable employers to offer crypto as the plan’s alternative investment using Coinbase Global Inc COIN Institutional crypto platform.

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

Brett Tejpaul, Head of Institutional Coverage at Coinbase, added to this, “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 401k technology platform, to expand access to cryptocurrency through 401ks,” Tejpaul added.

Employers will be able to include cryptocurrency through a self-directed alt window inside the 401k alongside their investment lineup.

After this, participants will be able to transfer up to 5% of their portfolio into a cryptocurrency window where they can invest in over 50 cryptocurrencies.

ForUsAll said it would closely monitor allocations and alert employees when their overall cryptocurrency allocation exceeds 5% of their portfolio, making it easy to rebalance into more traditional mutual funds.

Read also: Bitcoin IRA Co-Founder Says Company Aims To Be 'Agent Of Mass Adoption'

David Ramirez, Co-founder and Chief Investment Officer noted 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.”

However, Ramirez emphasized the need to first educate the average employee on cryptocurrency as an asset class, adding “the volatility and the complexity of these asset classes make prudent education and advice for employees essential.”