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Human Resource and Payroll service Bitwage launches Bitcoin 401(k). The new product is set to help employers meet the PPP requirements. It was rolled out in partnership with Gemini, Kingdom Trust and Leading Retirement Solutions.
Bitwage, a U.S.-based payroll and HR support service company has rolled out a new offering called Bitcoin 401(k). The Bitcoin 401(k) employee pension account will soon be marketed to small scale businesses especially those struggling to meet up with the 75% paycheck requirement outlined in the Paycheck Protection Program (PPP) in the United States of America. The new product offering will afford subscribers to contribute with traditional and Roth 401(k) funds, Buy and sell between Bitcoin (BTC) and USD with deferred or no capital gains taxes. The scheme will also afford users an opportunity to invest in Bitcoin and traditional 401(k) assets while making room for 401k consulting through dedicated 401(k) administrators.
Purposes of Bitcoin 401(k) from Bitwage
Several businesses suffered a great economic loss with the closure of businesses that was necessitated due to the need to slow the spread of the coronavirus pandemic. Businesses around the world including those from the U.S had to lay off their staff, some had difficulties in paying their staff due to low-profit turnover.
The majority were also unable to service their debt and the U.S government had to re-enact the Paycheck Protection Program by issuing Small Business Administration (SBA) loans to help businesses keep their staff employed while the latter will be able to meet basic needs whilst COVID-19 rages on. The SBA loan is designed to be forgiven if all of the company’s employees are kept on the payroll for 8 weeks and the money is used for salaries, rent, mortgage interest and utilities. Even with this generous offering, some companies may find it arduous to meet this requirement and thus births the Bitwage innovation to offer Bitcoin 401(k) to help cushion the effects.
Parties Collaborating with Bitwage
The Bitcoin 401(K) plan is in collaboration with Gemini, a digital asset exchange and custodian founded in 2014 by Cameron and Tyler Winklevoss and Kingdom Trust, an established digital currency custodian, and Leading Retirement Solutions. The synergistic collaborations between these blockchain centric companies will help the scheme offer diverse services from trading on Gemini to the record of signed up employees records with the Department of Labor and the Internal Revenue Service (IRS) through Leading Retirement Solutions.
Prospects of Bitcoin 401(k)
The adoption of Bitcoin 401(k) may prove to offer some laudable benefits for companies and employers by helping the former meet up with its PPP obligations and offering the latter a one stop place for trading, investment and tax incentivized retirement accounts among others. As with a new product offering emerging from new technology markets, Bitcoin 401(k) may prove to be the next big thing in palliative offering this COVID-19 era and beyond.