Fidelity Investments, a multi-national financial services firm based out of Boston, announced that it allows people to add Bitcoin into their 401(k), provided the employer permits. 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 Gives Workers the Option to Add Bitcoin To Their 401(k).
Fidelity Investments (the largest provider of 401(k) plans in the United States), now allows people to add bitcoins to 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. Gray also stated that digital assets accounts will become widely available in the second half 2022.
An account for digital assets will work in the same manner as a traditional mutual fund. Employers can add a portion of bitcoin to workplace retirement programs. 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.
Fidelity only allows investments of 20% at the moment, though they said future changes could alter the allocation percentage. However, the employer must also approve the plan. Employees can then save some of their 401k in bitcoin. The percentage threshold is set by the employers. According to the Boston-based financial institution, the business intelligence firm Microstrategy has already signed up for Fidelity’s bitcoin-infused 401(k) offering.
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