Everscale Partner
Bitwage, a provider of payroll solutions for remote workers in cryptocurrency, has announced the launch of a retirement plan with the option of investing in bitcoin. The proposal was framed in accordance with Model 401 (k), the most popular private pension scheme in the United States.
According to Jonathan Chester, CEO of Bitwage, the public launch of the solution was carried out after 10 months of testing with the participation of employees of the company itself.
Pursuant to US Tax Code article 401 (k), from which the pension plan was named, employees can transfer part of their salary to their personal savings pension accounts before taxes. In addition, the amount of contributions may be increased at the expense of the employer’s own funds. Typically, such plans are based on a basket of assets, in particular stocks and bonds.
The cryptocurrency exchange Gemini, the custodial services provider Kingdom Trust and Leading Retirement Solutions also participated in the development of the solution. Gemini will do the conversion of dollars to Bitcoin, the Kingdom Trust will manage the storage of assets, and the Leading Retirement Solutions will do the administrative work. Fiat currency will be converted to digital currency automatically in accordance with the payment period.
Bitwage expects its offer to help companies get the most out of their payroll program, in which authorities provide businesses with a line of credit to support amid a coronavirus pandemic. The state will free companies from the need to repay loans if they use at least 75% of the funds received to pay salaries, including pension contributions.
“Companies now have the opportunity to provide payments for accounts 401 (k) in order to fulfill the 75% condition. We help employers get the most out of this program while providing their employees with new and innovative investment solutions, ”Bitwage said.
