A small group of workers will find something new in their 401(k) plan starting in July: the option to invest in cryptocurrency.
ForUsAll Inc., a 401(k) provider, announced earlier this month a deal with the institutional arm of Coinbase Global Inc., a leading cryptocurrency exchange, that will allow workers in plans it administers to invest up to 5% of their 401(k) contributions in bitcoin, ether, litecoin, and others.
Executives at ForUsAll won’t say how many of the firm’s 400 employer clients have signed up for the cryptocurrency platform so far. Founded in 2012, the company provides automated 401(k) administration, menus of low-cost mutual funds, and access to human advisers.
With just $1.7 billion in retirement-plan assets, ForUsAll represents a small piece of the $22 trillion retirement-account market. But its embrace of crypto comes at a time of heightened mainstream interest in digital currencies.
That said, crypto-investing is virtually nowhere to be found in 401(k) plans and individual retirement accounts at the moment.