By RTTNews Staff Writer | Published: 11/24/2020 9:24 AM ET
Digital Asset Investment Management (DAiM) has rolled out the first ERISA-compliant employer-sponsored 401(k) retirement plans that support Bitcoin (BTC). Employers of any size can adopt these plans for the benefit of their employees.
DAiM is the first licensed Registered Investment Advisor for Bitcoin and digital assets. It was approved by the State of California in June 2018 and is responsible for selecting, managing, monitoring, and benchmarking the investment offerings.
DAiM will serve as the advisor and fiduciary to help companies create a 401(k) Plan with access to Bitcoin that offers several recommended model portfolios of varying risk to traditional assets and allocation of up to 10 percent to Bitcoin. The employee also has an option to allocate more to Bitcoin.
The company executed the very first employer-sponsored 401(k) plan in October 2019 and is now launching scalable 401(k) plans that provide record keeping and administrative services.
All the invested Bitcoin will be held securely in Institutional Cold Storage Custody with Gemini Trust, DAiM's partner for its primary Investment Advisory services. As and when an employee leaves a particular company, their Bitcoin will be able to transfer with them.
DAiM said it can work with companies of any size, to either switch plans from their current provider or by implementing a first time employer-sponsored 401(k) plan with key tax credits.
However, DAiM noted that companies which are interested in offering an employer-sponsored 401(k) plan with Bitcoin for 2021, the plans need to be put in place by mid-December of this year.
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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.
Article reposted on Markethive by Jeffrey Sloe