Fidelity Investments has recently announced the launch of zero-fee retirement plans that provide investors with exposure to three major cryptocurrencies – Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). These retirement plans are available to US citizens over the age of 18 who reside in states where Fidelity Digital Assets supports crypto individual retirement arrangements (IRAs).
There are three different IRA plans offered by Fidelity Investments. The first plan is a tax-free Roth IRA, which allows investors to save for retirement with already taxed money. The second plan is a more traditional IRA, which allows for tax-deferred potential earnings growth. The third plan is a Rollover IRA, which enables investors to transfer funds from a former employer’s plan to an IRA.
In order to open a Fidelity Crypto IRA, investors must also hold a Fidelity brokerage IRA with the same registration type, which serves as a funding account. Users can transfer funds from the linked brokerage IRA into the crypto IRA to execute trades. If an individual does not already have a qualifying Fidelity brokerage IRA, the firm will open one in parallel when setting up the crypto IRA.
Fidelity Investments has chosen to include only Bitcoin, Ethereum, and Litecoin in their crypto IRA plans, focusing on established assets with relatively higher market capitalization and liquidity. The company has stated that there will be no maintenance fees for opening and maintaining a Fidelity Crypto IRA, as well as associated custody services for digital assets. However, Fidelity Digital Assets will apply a 1% spread to buy and sell orders.
These retirement plans allow users to retain familiar features of traditional Fidelity retirement accounts, including beneficiary management. The designated beneficiaries for the Fidelity Crypto IRA will mirror those established on the user’s linked brokerage IRA, and customers can make changes to beneficiaries through the brokerage IRA platform.
This latest move from Fidelity Digital Assets further solidifies the company’s commitment to providing innovative solutions in the cryptocurrency space. With the launch of zero-fee retirement plans that offer exposure to Bitcoin, Ethereum, and Litecoin, Fidelity Investments is making it easier for investors to include digital assets in their retirement portfolios.