Fidelity Investments, one of the world’s renowned asset managers, has decided to allow its clients to include a certain amount of Bitcoin into their 401(k) plans.
In an announcement made Tuesday, Fidelity said its clients can invest a portion of their retirement savings in bitcoin as early as the middle of this year. 401(k) plan is a qualified retirement savings plan sponsored by many employers in America.
Presently, Fidelity is the country’s largest provider of 401(k) plans. Adopting Fidelity as the pension provider will provide certain benefits for its clients, including exposure to the currency without opening an account in a centralized exchange In addition, taxpayers can also defer their tax payments until retirement.
Dave Gray, head of workplace retirement offerings and platforms at Fidelity Investments, remarked:
“There is growing interest from plan sponsors for vehicles that enable them to provide their employees access to digital assets in defined contribution plans, and in turn from individuals with an appetite to incorporate cryptocurrencies into their long-term investment strategies.”
According to a Wall Street Journal article dated April 26, the new 401(k) plan will be similar to traditional investment trusts. Business Intelligence firm MicroStrategy will become the first US-based employer to avail of this type of investment in its retirement plan.
While the employer will determine the cap on the amount of savings allowed to invest in bitcoin, a 20% maximum ceiling is expected to be put in place. Account fees will also fluctuate between 0.75% to 0.90% depending on factors such as employer and investment amount.
Fidelity Investments to add Bitcoin to its 402(K) pension plan Our Bitcoin News.
