Crypto payroll company Bitwage says it’s launching the first Bitcoin 401(k) employee pension plan in existence, which will allow workers to convert their pre-tax and post-tax dollars into BTC investments.
Bitwage CEO Jonathan Chester says the firm is rolling out the product in collaboration with crypto exchange Gemini, IRA custodian Kingdom Trust, and pension provider Leading Retirement Solutions. Gemini will facilitate the automatic conversion of funds that are deposited into 401(k) plan accounts every pay period.
“Our vision includes integrating the Gemini trading engine directly inside of the 401(k) Plan so institutional as well as retail investors have access to the same Gemini trading tools inside of tax-incentivized retirement accounts.”
Bitwage is offering the product to employers that received funding from the Small Business Administration (SBA) Paycheck Protection Program (PPP) to buffer the economic impact of the coronavirus pandemic.
The program offers 100% loan forgiveness to companies that spend 75% of the funds they received on payroll expenses. Bitwage says allocating some of the loans into 401(k) plans is counted in the 75% target.