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Recent studies show that more and more people see cryptocurrencies as part of their retirement plan. For example, 3 out of 5 people said they wanted access to crypto in their 401(k) plan1, and 54% of Millennials and Gen Z say crypto is already part of their retirement strategy2. Adding 401(x) can help you win the war for talent. Become an HR hero today!
With 401(x), you can give your employees access to digital assets through a unique self-directed crypto window that works with your current 401(k) plan. No need to change your provider. No need to change your investments. And with no employer fees and easy setup, providing access is a snap!
401(x) is a modern self-directed account with access to a range of cryptocurrencies. Give your employees more choice without having to change your plan or your core investment options.
401(x) works just like a self directed brokerage account. Simply approve the option, set a maximum cap on transfers and we’ll handle the rest. We can even craft a communication plan to let your team know about the new feature. We work with some of the largest 401(k) providers in the country. Contact us to learn more.
401(x) has an easy to use online account opening wizard for your employees with built-in guard rails. Employees indicate how much they want to transfer and you approve their request. Once the account is open, your employees login directly to 401(x) where they can now invest in a range of digital assets.
Collectively, our team has decades of 401(k) experience working with Fortune 500 companies, professional services firms, manufacturers and small business owners. Our retirement technology and platforms are used by over 500 companies to provide modern 401(k) benefits to tens of thousands of employees. We’ve built 401(x) with Coinbase Institutional to provide a state of the art, self-directed crypto window that works with your current 401(k) plan. Give your employees access to the investments they want with 401(x).
We’re here to help answer any questions and guide you through the process.
Read our list below and contact us if you have any further questions. We are more than happy to assist!
As part of our due diligence when selecting a partner, we carefully evaluated the security practices and protocols including provider SOC certifications, because security was one of our most important criteria. All crypto is held in cold storage, except briefly when you’ve requested a transaction. This is also critical for increasing security. Here’s what Bitdegree had to say about Coinbase’s security: ”While it is never 100% safe to [keep] your money on any online exchange, Coinbase is one of the safest web wallets you can use. Coinbase keeps almost 99% of their assets in offline cold storage that can’t be accessed — when in cold storage, they cannot be hacked!” “Additionally, any assets in the hot wallet are insured.” Finally, assets in the crypto window cannot be transferred out of the window except back into the 401(k) traditional investment account.
Yes, both pre-tax and post-tax (Roth) money sources are supported.
Our parent company ForUsAll Advisors selects which cryptocurrencies and tokens from the Coinbase platform are available in the crypto window.
You, the plan sponsor, can specify any cap on the percentage of a participant’s account balance that can be transferred to the window, up to a maximum of 20%.
The 401(x) self-directed cryptocurrency window is available at your recordkeeper through Split-Funding, meaning that plan sponsors must elect the Split-Funded feature and notify your recordkeeper of the approval of the ForUsAll self-directed cryptocurrency window. Once approved, 401(x) will work with you to communicate the availability of the window to participants. When a participant wants to invest a portion of their 401(k) in cryptocurrency, they simply download and complete the Split-Funded asset transfer form and submit it to the sponsor. Your recordkeeper will then process the transfer after which the participant will be able to buy and sell cryptocurrency through the 401(x) self-directed cryptocurrency window.
Our parent ForUsAll is one of the fastest-growing 401(k) providers. ForUsAll was founded in 2012 by the same team that helped build Financial Engines (now Edelman Financial Engines), the largest registered investment advisor in the United States. As one of the first technology-driven 401(k) specialists, ForUsAll is responsible for bringing innovative low-cost, high-touch 401(k) solutions to employers and their employees. ForUsAll has partnered with Coinbase to bring the first self-directed cryptocurrency window to 401(k)s. ForUsAll acts as program administrator for the window, responsible for the selection and monitoring of Coinbase, selection and monitoring of the available cryptocurrencies, and delivering the customer experience and customer support for the window.
By giving employees access to modern investment choices like cryptocurrency, sponsors can use their 401(k) plans to boost their ability to find and retain top talent. In addition, a 401(k) with exciting features could help increase plan participation rates, particularly among younger people, and thus help ensure plan health. From the investments perspective, cryptocurrency represents an efficient way to invest in the emerging blockchain technology sector. With digital assets representing a measurable portion of the global portfolio, a small allocation to cryptocurrency may be appropriate for many retirement portfolios.
1 To be fully tax exempt and subject to withdrawal without penalty, you must meet the 5 year rule for the initial Roth deferral and you must be at least 59 1/2 years old when you take your distribution. ForUsAll does not provide tax advice, and the tax laws could change in the future. Consult your retirement plan provider or your accountant for details.
This material has been prepared for informational and educational purposes only and should not be construed as a recommendation by ForUsAll, Inc., its affiliates or employees (collectively, “ForUsAll”) to activate a cryptocurrency window or invest in cryptocurrency. Investing in cryptocurrency can be risky and investors must be able to afford to lose their entire investment. You should consult with your own advisers before activating a cryptocurrency window or investing in cryptocurrency. ForUsAll does not provide legal, tax, or accounting advice. Please refer to your Plan's fee disclosure for more details.
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