Can I buy cryptocurrency in my 401(k)?

The advantage of using retirement funds to buy cryptocurrency is that all gains are tax-advantaged. So long as your 401 (k) plan documents permit alternative assets and the plan trustee will allow the investment, you will generally be permitted to buy cryptocurrency in your 401 (k) plan.

Can 401(k) employees invest in crypto?

Employers have a responsibility to offer “prudent” investment options in their 401 (k) accounts, and at the moment, the Department of Labor has implicitly said that crypto doesn’t meet this test. It remains to be seen, however, how many employers will allow their staff to buy Bitcoin in this way and at what volume.

Can I invest in bitcoin in my 401(k)?

If you are interested in investing in Bitcoin in a retirement account but can't in your employer-sponsored plan, you can use a self-directed IRA or solo 401 (k) plan to put the decision making into your own hands. The information provided here is not investment, tax or financial advice.

How many cryptocurrencies can you invest in a retirement plan?

ForUsAll limits allocations to 5%. It offers six cryptocurrencies — bitcoin, ethereum, solana, polkadot, cardano and USDC — and soon intends to add more. Within the 50 or so retirement plans that have made crypto available, 12.5% of investors are investing and allocate 4% of their portfolio to crypto, on average.