CNBC: There’s a push to bring bitcoin to 401(k) plans. Why it could take awhile before you see these investments in yours.

Neal Nolan was quoted in CNBC's story on the inclusion of bitcoin in 401(k) plans and why he advises against it.

Excerpts from the article:

“Neal Nolan, director of business retirement services at Parsec Financial in Asheville, North Carolina, said he recently had a client who wanted to add bitcoin to their 401(k) through a self-directed brokerage account.

Though it was the first time Nolan had received such a request, he wasn’t surprised. ‘I figured it would happen eventually,’ he said.

After the firm’s investment committee met, the plan’s trustees ruled against it.

One reason for keeping it out of the plan is that if one participant has a self-directed account, it has to be offered to everyone. That could be burdensome for plan sponsors, which would have the responsibility of monitoring those investments.

Moreover, an investment like bitcoin would have to be deemed reasonable for everyone in the plan, which is a high bar.

Ultimately, it’s better to risk being late to the party than for retirement plans to sacrifice their role as good stewards of the funds, Nolan said.

‘If you don’t understand something, prudence would suggest you find out more information or wait,’ Nolan said. ‘Never invest in something that you can’t understand or explain.'”

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