Fidelity Investments is launching a Zero Fee Retirement Plan that provides exposure to investors in three major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC).
This product is available to US citizens age 18 and older who live in states where loyal digital assets support the Crypto Individual Retirement Agreement (IRA). Asset Manager offers three different IRA plans:
The first plan is a tax-free Loss IRA, allowing investors to save money on retirement with already taxed money, butHe is the second more “traditional” IRA, allowing for potential revenue growth for tax deferred.
The third plan is a rollover IRA, where investors can transfer funds from their former employer’s plan to an IRA such as a 401(k), 403(b), or another IRA.
To open a loyal crypto IRA, investors must maintain a loyal brokerage IRA with the same registration type that serves as a funding account.
Users can transfer funds from linked brokerage IRA to Crypto IRA to carry out the transaction. If an individual does not yet have a qualified, loyal brokerage company IRA, the company will open in parallel when setting up a crypto IRA.
Furthermore, Fidelity’s decision to include only Bitcoin, Ethereum and Litecoin focuses on established assets with relatively high market caps and liquidity.
There is no maintenance fee
The company says that initiation and maintenance of loyal crypto IRAs and associated custody services for digital assets are not charged to customers.
However, Fidelity Digital Assets applies a 1% spread to buy and sell orders. The spread represents the difference between the price a client receives and the price at which a Fidelity Digital Asset supplies the asset to fill the order.
This offering allows users to retain familiar features of traditional fidelity retirement accounts, including beneficiary management.
The designated beneficiaries of the Fidelity Crypto IRA reflect those established in the User’s linked brokerage company IRA. Customers can make changes to beneficiaries through the brokerage IRA platform.
The move is the latest in Fidelity’s arms, Fidelity Digital Assets, which focuses on Crypto’s custody, transaction and management.
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