Cryptocurrency Investments – What Financial Advisors and Planners Need Know to Avoid Legal Actions

The Internal Revenue Code (Code) and the Employee Retirement Income Security Act of 1974 (ERISA) do not prohibit the use of cryptocurrency as an investment option in a 401(k) plan. Fidelity Investments will offer participants the option to put bitcoin in their 401(k)s by the middle of 2022. However, the Department of Labor cautions plan fiduciaries to exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan's investment menu for plan participants. As retirement financial planners and fiduciaries, we need to understand how to work with and appropriately advise clients about the risks and potential benefits of cryptocurrency investments in their retirement plans. Testimonial: “Andrew demystified the “new language of the “crypto world”. Learned the importance of documenting the risks associated with alternative investments like bitcoin, even if the client made the investment in crypto on their own elsewhere. This was a great "primer" for anyone wanting to learn about crypto investments. Excellent presentation!”