ForUsAll announced this month it had teamed up with Coinbase, a cryptocurrency exchange platform, to allow employees to put up to 5% of their 401 investments in bitcoin and other cryptocurrencies.
Take someone who buys bitcoin early in the year, then sells after a run-up in price and buys the cryptocurrency ether.
This year, savers can put up to $19,500 in their 401, or $26,000 for those who are age 50 and over.
With 401 lawsuits generally increasing, these kinds of investments could be vulnerable because they are so new, Pottichen said.
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.