Bitwage launches bitcoin-based retirement plan for employees. The payroll service has partnered with Gemini to launch Bitcoin 401 (k) plan, allowing companies to offer employees a BTC-based retirement plan.
A 401(k) is a retirement plan that allows employees of a company to save and invest for retirement on a tax deferred basis. Under the plan, companies can match employee contributions in part, or in whole.
The pre-tax plan, also known as traditional 401k, allows investment deferrals on income tax until withdrawal while the post-tax plan or Roth 401k allows investments that are tax-free on qualifying withdrawals. Workers now have the ability to invest their pre-tax and post-tax dollars in BTC, through their employer.
“All funds will be converted on Gemini automatically for each pay period. Employees will be able to choose to buy and sell between USD and bitcoin as they want,” said the Bitwage.