Coinbase Signs 401(k) Bitcoin Investment Deal
In a first of its kind, Coinbase has signed a deal to allow 5% of 401(k) contributions to go towards bitcoin, eth, litecoin, or other cryptos on Coinbase’s platform.
The deal is with ForUsAll Inc, which describes itself as “one of the largest and fastest growing 401(k) advisors in America.”
They have 400 employer clients with it unclear how many have signed up so far to somewhat directly access bitcoin through their employment pension contributions.
ForUsAll is relatively small in the $22 trillion 401(k) market, having about $1.7 billion in retirement-plan assets, but others may follow.
Coinbase further announced they are expanding the number of states where US customers can borrow up to 40% of their bitcoin collateral in cash.
Such borrowed amount would account as a loan. Because it would be repayable, no taxes are paid on the loan itself, unlocking tax free crypto liquidity while still holding the crypto.
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