Fidelity Launches Zero-Fee Retirement Plan Embracing BTC, Ethereum, and LTC
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Fidelity Launches Zero-Fee Retirement Plan Embracing BTC, Ethereum, and LTC
Fidelity decided to include only BTC, Ethereum, and LTC, reflecting its focus on mature assets with relatively high market capitalization and strong liquidity.
Navigating Web3 tides with focused insightsSource: cryptoslate
Translation: Blockchain Knight
Fidelity Investments will launch a zero-fee retirement plan that provides investors access to three major crypto assets: BTC, Ethereum, and LTC.
U.S. citizens aged 18 or older residing in states where Fidelity Digital Assets supports cryptocurrency individual retirement accounts (IRAs) can participate in the service. The asset management firm offers three different IRA plans.
The first is a tax-free Roth IRA, which allows investors to save for retirement using after-tax dollars, while the second is a more "traditional" IRA that enables potential growth of earnings on a tax-deferred basis.
The third option is a Rollover IRA, which allows investors to transfer funds from their previous employer's plan into an IRA, such as a 401(k), 403(b), or another IRA.
To open a Fidelity Crypto IRA, investors must also hold a Fidelity Brokerage IRA registered under the same type, serving as a funding account.
Users can transfer funds from their linked brokerage IRA to the Crypto IRA to conduct trades. If an individual does not yet hold a qualifying Fidelity Brokerage IRA, the company will automatically establish one when setting up the Crypto IRA.
Additionally, Fidelity’s decision to include only BTC, Ethereum, and LTC reflects its focus on mature assets with relatively high market capitalization and strong liquidity.
According to the company, opening and maintaining a Fidelity Crypto IRA, along with the associated digital asset custody services, incurs no fees for customers.
However, Fidelity Digital Assets will apply a 1% spread fee on buy and sell orders. The spread refers to the difference between the price received by the customer and the price at which Fidelity Digital Assets acquires the assets to fulfill the order.
The service allows users to retain familiar features found in traditional Fidelity retirement accounts, including beneficiary management.
The designated beneficiaries for the Fidelity Crypto IRA will be the same as those set on the user's linked brokerage IRA. Customers can update beneficiaries through the brokerage IRA platform.
This move marks the latest initiative from Fidelity Digital Assets, the division of Fidelity focused on cryptocurrency asset custody, trading, and management.
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