Gemini and Bitwage Opened Acceptance of American Pension Contributions for Investing in Bitcoin
Bitwage, a company providing solutions for payroll services for remote workers in cryptocurrency, announced the launch of a retirement plan with the ability to invest in Bitcoin. The proposal was executed in accordance with the 401 (k) model, which is the most popular private pension scheme in the United States..
According to Bitwage CEO Jonathan Chester, the public launch of the solution was carried out after 10 months of testing it with the participation of employees of the company itself..
Under Tax Code 401 (k), from which the retirement plan is named, employees can transfer a portion of their salary to their personal retirement savings accounts before taxes. In addition, the amount of contributions can be increased at the expense of the employer’s own funds. Usually such plans are based on a basket of assets, in particular stocks and bonds..
Gemini cryptocurrency exchange, custodian provider Kingdom Trust and Leading Retirement Solutions also participated in the development of the solution. Gemini will handle converting dollars to bitcoin, Kingdom Trust will handle regulated asset custody, and Leading Retirement Solutions will handle administrative work. Conversion of fiat currency to digital will be carried out automatically in accordance with the payment period.
Bitwage expects its proposal to help companies get the most out of the payroll protection program, under which the government is providing businesses with a line of credit to support amid the coronavirus pandemic. The state will release companies from the need to repay loans if they use at least 75% of the funds received to pay salaries, including pension contributions.
“Companies have the opportunity to provide payments for 401 (k) accounts in order to fulfill the condition of 75%. We help employers get the most out of this program while providing their employees with new and innovative investment solutions, ”said Bitwage.