13 June 2020 by Clementine
Following a test conducted on a sample of selected employees in its staff, Bitwage is finally ready to deploy its retirement plan based on Bitcoin on all workers in general. This success was achieved thanks to the intervention of the exchange platform Gemini.
A plan with tax-deferral
Now, the workers have the choice between two systems, in particular, to place their investments before or after taxes in BTC, and this, with the collaboration of their employer.
On the one hand, the product traditionally called a 401 (k) allows employees to contribute to their retirement, knowing that the taxes will be deferred until the time of benefit from his pension. On the other hand, the Roth 401k is a system of contributions tax-free, but only for a category of people who are eligible.
The exchange platform Gemini holds a mission of size within this system, because its task is to transcribe the contributions allocated to it in securities denominated in digital assets. But although the funds are already available in digital currencies, the choice of touching retirement pensions, which are either in USD or in Bitcoin, back is fully to the employees.
Prioritize small businesses
This new product is in line with the ambition to support small businesses to comply with the standards of the Paycheck Protection Program (PPP). As a reminder, this is a loan program launched by the u.s. government, in order to motivate the employers to find an other solution more flexible as the dismissal during this health crisis today.
In depth, the PPP offers a reward of 100% of the loans granted, provided that the recipient companies are subsidizing their employees with 75% of the funds borrowed.
For your information, the pension benefits will be recorded as a salary expense, which makes valid the application of the solution of Bitwage with this employment policy as established by the State. By contrast, the annual salaries capped at $ 100 000 may not join this system.
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Passionate about the universe geek, Clementine finds the news more interesting and involved in their drafting.
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