Fidelity’s New 401(k) Product Lets Workers Add Up to 20% in Bitcoin to Their Retirement Plans

Fidelity"s New 401(k) Product Lets Workers Add Up to 20% in Bitcoin to Their Retirement Plans

The multinational financial services corporation based in Boston, Fidelity Investments, has revealed the firm is allowing people to add bitcoin into their 401(k) plan as long as the employer allows it. According to Fidelity’s head of workplace retirement offerings, the company has seen “growing interest from plan sponsors” that wanted to add bitcoin to retirement plans. Fidelity Is Giving Workers the Ability to Add Bitcoin to Their 401(k) Plan

Fidelity Investments, the largest 401(k) plan provider in the United States, is now allowing people to add bitcoin to their retirement accounts. According to a report from the New York Times (NYT), Fidelity’s head of workplace retirement offerings Dave Gray explained that the company was noticing demand for adding digital assets to the firm’s 401(k) plans.

“We started to hear a growing interest from plan sponsors, organically, as to how could Bitcoin or how could digital assets be offered in a retirement plan,” Gray remarked. The financial services company also noted that the digital assets account will be broadly available by the second half of 2022.

The digital assets account will be managed like a traditional mutual fund and employees can designate a percentage of bitcoin to their workplace retirement offerings. According to the NYT report, the percentage will be limited and the retirement account’s fee will be between 0.75% to 0.90% of the plan owner’s percentage of assets.

For now, Fidelity will only allow an investment of 20%, but said the allocation percentage could change in the future. Of course, employers also have to approve the plan and allow employees to save part of their 401(k) in bitcoin, and employers will determine the percentage threshold. According to the Boston-based financial institution, the business intelligence firm Microstrategy has already signed up for Fidelity’s bitcoin-infused 401(k) offering. Tags in this story 401(k) bitcoin, 401k, America"s Largest 401(k) Provider, bitcoin 401(k), Bitcoin retirement plan, Boston, BTC, Dave Gray, Digital Currencies, fidelity, Fidelity Investments, financial institution, head of workplace retirement offerings, mutual funds, Retirement plan, retirement plan bitcoin, retirement plans

What do you think about Fidelity allowing people to add bitcoin to their 401(k) retirement plans? Let us know what you think about this subject in the comments section below. Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Report: Only 5.3% of Spanish Crypto Investors Have Received a Warning to Declare Income Taxes NEWS | 19 hours ago Elon Musk Purchases Twitter for $44 Billion, Social Media Company Will Transition to a Private Company NEWS | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBuenos Aires Confirms It Plans to Allow Citizens to Pay Taxes With Cryptocurrency Next articlePermission․io Is Migrating to Polygon Network to Globally Scale Web3 Advertising Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days

Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin