First-of-its-kind technology, the Alt401(k) platform prioritizes access and education to help participants diversify their retirement portfolio with cryptocurrency.
SAN FRANCISCO–(BUSINESS WIRE)–#crypto401k–ForUsAll, a leading retirement provider for small businesses, today announced that 50 companies are live with the Alt401(k), their retirement platform which gives employees the freedom to invest part of their 401(k) in potentially higher-growth opportunities like cryptocurrency alongside traditional 401(k) mutual funds. ForUsAll is the first to deliver crypto in the 401(k).
More than 50 of ForUsAll’s customers have enabled access to cryptocurrency investments for their participants, with over 100 more expected to be live in the coming weeks. Leading companies like Stacks Foundation, Compass Mining, NuHire and BOND are among the companies who have made the Alt401(k) available to their employees.
“We believe in providing our employees every available opportunity to save for their financial future, and the Alt401(k) from ForUsAll gives them the tools to do just that,” said Brittany Laughlin, Executive Director at Stacks Foundation. “We believe cryptocurrency and blockchain technology possess great potential for the future.”
“Our team has the privilege of helping grow some of the most cutting-edge blockchain startups in the world,” said Ashton Wood, founding partner of NuHire Group. “We see first-hand the innovations coming to the financial sector and owe it to our employees to ensure convenient access to the future of finance.”
ForUsAll’s Alt401(k) retirement platform provides a simple menu of low-cost mutual funds alongside self-directed windows that allow employees to seek additional growth opportunities in the broader universe of stocks, ETFs, Bonds and now cryptocurrency.
“Despite the recent downturn, cryptocurrency has been one of the fastest growing asset classes over the last decade because it is the predominant way people invest in blockchain technology,” said David Ramirez, ForUsAll’s Chief Executive Officer and Co-Founder. “95% of the Fortune 500 companies surveyed are exploring blockchain technology, as are nearly 100 central banks – the potential for widespread adoption is significant. Everyday Americans should not be left out.”
How it works:
- Self-directed growth windows: Through the Alt401(k), employers can provide employees additional opportunities for diversification and potential growth by adding self-directed windows alongside traditional mutual funds. Participants can choose to invest in the core menu of traditional funds or seek additional potential growth or diversification by investing in individual stocks, bonds, ETFs or cryptocurrency.
- 5% Crypto Cap: Employees can transfer up to 5% of their balances and ongoing contributions into a secure account that includes access to screened cryptocurrencies (e.g. Bitcoin, Etherium, Solana, etc.)
- Risk monitoring: ForUsAll closely monitors crypto allocations, alerting employees when their overall cryptocurrency allocation exceeds 5% of their portfolio, making it easy to rebalance.
- Hard-wired investor protections: Risk-focused employee education, robust risk disclosures, and a quiz employees must pass, demonstrating that they understand the risks.
- Employer fiduciary protections: By providing access to additional options via self-directed windows, employers preserve flexibility and employee choice while avoiding fiduciary risk typically associated with adding more sophisticated options to the core 401(k).
Built-in investor protections
As with any volatile asset, ensuring employees have an understanding of the inherent risks is crucial and ForUsAll has hard-wired proactive investor protections and education into the Alt401(k). Before employees can access the crypto window, they must first acknowledge comprehensive risk disclosures and then pass a quiz.
“We spent considerable time balancing the needs of sophisticated employees that demand the freedom to invest how they see fit with much-needed protections for less-knowledgeable employees,” said Jeff Schulte, Chief Product Officer. “We were concerned some people might not read the risk disclosures, a pop quiz helps ensure that only employees that understand the risks get access.”
Once employees pass the quiz, they are able to transfer up to 5% of the current balance and 5% of ongoing contributions into the crypto window.
The crypto window contains a curated list of cryptocurrencies (such as Bitcoin, Etherium and Solana, etc.) that make it through a robust and stringent vetting process designed to exclude assets with higher risks of fraud. As digital assets continue to gain widespread adoption among wealthy Americans and institutional investors alike, ForUsAll agrees with President Biden’s recent executive order that it is imperative for everyday Americans to also have the opportunity to share in the benefits of this transformative technology. As the executive order stated: “The United States also has an interest in ensuring that the benefits of financial innovation are enjoyed equitably by all Americans and that any disparate impacts of financial innovation are mitigated.”
“Our mission has always been to democratize access to institutional quality investments so that every American has a fair shot at building wealth,” said Ramirez. “Fidelity, Goldman Sachs, BlackRock, and many more now offer cryptocurrency to their high-net-worth and institutional clients. Everyday Americans simply deserve equal access.”
For more information about ForUsAll, visit www.forusall.com.
About ForUsAll
ForUsAll is a tech-enabled 401(k) provider that is pioneering the inclusion of cryptocurrency in retirement plans. Founded in 2012 by the same team that helped build Financial Engines, the largest registered investment advisor in the country, ForUsAll’s mission is to provide everyday Americans with the tools they need to build a brighter financial future. With $1.4B in assets under management, ForUsAll serves more than 80,000 retirement savers across over 500 plans, and is trusted by businesses that insist on a 401(k) experience their employees will love.
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