Should you invest in crypto inside your 401(k)?
Employers have a decision to make: Should they offer crypto inside 401(k)s?
Employees also have a similar decision: Should they invest in crypto inside 401(k)s?
Providers of 401(k)s have started offering crypto as investment options to employers:
- ForUsAll says 50 of its 550 employers have allowed workers to invest in six cryptocurrencies — including Bitcoin, Ethereum, Solana and others.
- Fidelity began offering Bitcoin to its employers this fall — but no numbers are available yet.
ForUsAll set the crypto contribution limit at 5%, and Fidelity set its limit at 20%. But employers can set the maximum even lower if they even want to offer crypto at all.
So far, few employers are even entertaining the option.
Not everyone thinks crypto belongs in 401(k)s. Bloomberg’s Editorial Board warned that crypto has a limited track record — and that even pros struggle to grasp its concept.
The U.S. Labor Department wasn’t happy about companies planning to offer crypto in 401(k)s either — warning employers to “exercise extreme care” before adding it as an option.
Who would blame them? …FTX 👀
Crypto definitely isn’t for everyone. Nothing can ensure that your crypto won’t go to zero. Terra — once a top ten crypto by market cap — virtually went to zero overnight. It’s all a giant experiment.