Does Bitcoin Belong in Your Total Rewards Strategy?

Does HR know about HODLing? The fact is that many employees – particularly younger ones – are HODLers themselves. And many of them would like to be able to allocate some of their 401(k) assets to bitcoin and other cryptocurrencies.

A recent decision by the U.S. Department of Labor may encourage more employers to consider adding crypto to their menu of investment options.

According to a news release, the department “reaffirms its neutral stance” regarding whether cryptocurrencies belong in employer-provided retirement plans. The revised guidance opens the door for employers to consider adding ways for employees to invest in crypto through their 401(k) accounts.

It remains to be seen to what extent employers will introduce crypto options within their 401(k) plans. In part, it will depend on whether plan providers will facilitate the inclusion of cryptocurrency options. Fidelity Investments, the nation’s largest 401(k) record keeper, is known as being pro-crypto, whereas Vanguard has been quite clear that it believes that crypto is not appropriate for inclusion in workers’ retirement accounts.

Regardless of the specific options available to participants in an employer-provided retirement plan, organizations need to ensure that employees understand how their plan works and how their 401(k) fits in as part of their overall total rewards. Contact us today to learn more about how we can help your employees better understand and appreciate their total rewards – whether or not bitcoin is part of that package.