benjamin_stokes_astronomer
Thu Jul 11 2024
|
5 answers
901
Can 401(k) employees add Bitcoin to their accounts?
With the increasing popularity of cryptocurrencies, many 401(k) plan participants are wondering if they can diversify their portfolios by adding Bitcoin or other digital assets to their retirement accounts. But is this possible? Currently, the majority of 401(k) plans do not allow for the direct investment of cryptocurrencies like Bitcoin. However, there are ways that employees can potentially gain exposure to this emerging asset class. For instance, some mutual funds and exchange-traded funds (ETFs) may offer exposure to cryptocurrencies through investments in related companies or derivative products. Additionally, employees may consider setting up separate brokerage accounts outside of their 401(k) to invest in Bitcoin and other digital assets. But before making any decisions, it's crucial to understand the risks associated with investing in cryptocurrencies and consult with a financial advisor.
