The American Pension Revolution! Trump's New Policy Ignites $9 Trillion "Retirement Funds" to Enter Cryptocurrency
Latest news shows that former U.S. President Trump has signed a landmark executive order, officially opening the doors for cryptocurrency investment in 401K retirement funds with a total scale of up to $9 trillion.
Decoding the Operation Secrets of America's "Retirement Funds"
The 401K plan can be regarded as the "backbone" of the American retirement system, named after Section 401(k) of the U.S. Internal Revenue Code. Born in the 1980s, this pension system is essentially a "tax-deferred" retirement investment account, featuring a uniquely American operational model:
"Dual-Driven" Contribution Mechanism
Employees can contribute up to 15% of their salary to a dedicated account each month, while employers must match contributions proportionally. This "personal savings + company subsidy" model enforces savings while easing the individual burden.
"Tax Benefits" Trio
Contribution Phase: Contributions are exempt from personal income tax
Investment Phase: Earnings within the account are exempt from capital gains tax
Withdrawal Phase: Taxes are assessed at the time of withdrawal after age 59.5
This "pre-exemption and post-assessment" tax design bears similarities to China's individual pension system.
"Dancing with Shackles" Investment Restrictions
Unlike free stock trading, 401K investors can only choose from a menu of funds designated by their employer. It's like shopping in a "customized financial supermarket," and this new policy from Trump is akin to adding a "cryptocurrency asset section" on the shelves.
The Deeper Game Behind the New Policy
Observers point out that this reform is far from a simple expansion of investment scope. The $9 trillion is equivalent to 30% of the U.S. GDP, and allowing such a massive amount of funds into the crypto market means:
Official tacit recognition of cryptocurrency's "quasi-legal status"
The boundaries between traditional finance and the crypto world have been completely shattered
It could trigger a "domino effect" of global pension funds following suit
It is worth noting that the plan has strict "floodgates":
Withdrawals before age 59.5 incur a 10% penalty tax
After age 70.5, withdrawals must be made proportionally
Special circumstances such as sudden major illnesses may allow exceptions
This pension revolution is rewriting the rules of global asset allocation. For ordinary investors, it is essential to recognize the opportunities brought by policy dividends while being acutely aware of the unique volatility risks of the crypto market.
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