Fidelity Investments has introduced a new lineup of zero-fee retirement plans aimed at giving investors exposure to major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
These plans are designed for U.S. residents over the age of 18, specifically in states where Fidelity Digital Assets supports crypto individual retirement arrangements (IRAs).
The investment giant is rolling out three distinct IRA options. The first is a Roth IRA, which offers tax-free savings using already taxed income. Next is a traditional IRA, designed for tax-deferred growth on potential earnings. Lastly, the Rollover IRA enables users to transfer funds from previous employer-sponsored retirement plans, such as a 401(k) or 403(b), into a crypto IRA.
To open a Crypto IRA with Fidelity, users must also have a corresponding Fidelity brokerage IRA, which serves as the funding account. If the customer does not already have one, Fidelity will set it up concurrently. Once linked, users can transfer money between the brokerage and crypto IRAs to facilitate trading.
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Fidelity has chosen to limit its crypto retirement plans to Bitcoin, Ethereum, and Litecoin, focusing on well-established digital assets known for higher market capitalization and liquidity.
One of the key benefits is that there are no maintenance or account fees for setting up and holding a Fidelity Crypto IRA. However, a 1% spread will apply to buy and sell transactions. This spread represents the difference between the acquisition cost of the asset and the price provided to the client.
The structure of the Crypto IRA also mirrors traditional Fidelity retirement accounts by allowing users to designate beneficiaries through the linked brokerage IRA platform. Any changes to beneficiaries must be made via the same platform.
This latest move is part of Fidelity Digital Assets’ ongoing effort to bridge traditional finance with the evolving crypto market, emphasizing security and streamlined access for retirement-focused investors.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/fidelity-launches-crypto-retirement-options-with-bitcoin-and-two-altcoins/