A new initiative has been introduced to offer zero-fee retirement plans that enable investors to gain exposure to three prominent cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
These products are available to US residents aged 18 and over, living in states where digital assets for individual retirement accounts (IRAs) are supported. The asset management firm is providing three distinct IRA options.
The first option is a tax-free Roth IRA, which allows investors to prepare for retirement using funds that have already been taxed. The second option is a more “traditional” IRA that facilitates tax-deferred growth of potential earnings.
The third option is known as a Rollover IRA, permitting investors to transfer money from a previous employer’s plan—such as a 401(k), 403(b), or another IRA—into their new account.
To set up a Crypto IRA, investors must also maintain a brokerage IRA with the same registration type at Fidelity, which serves as a funding account.
From the linked brokerage IRA, users can transfer funds into the crypto IRA to engage in trading activities. If an investor does not already possess a qualifying brokerage IRA, one will be created simultaneously when the crypto IRA is established.
Furthermore, the choice to feature only Bitcoin, Ethereum, and Litecoin highlights a preference for well-established assets known for their higher market capitalization and liquidity.
No maintenance fees
According to the firm, setting up and managing a Crypto IRA, along with the custody services for these digital assets, will incur no fees for users.
However, a 1% spread will be applied by the digital asset division on buy and sell orders. This spread indicates the difference between the price a customer receives and the price at which the firm acquires the asset in order to fulfill the transaction.
The new offering enables users to keep familiar elements of traditional retirement accounts, such as beneficiary management.
The designated beneficiaries for the Crypto IRA will match those established on the user’s linked brokerage IRA, and changes to these beneficiaries can be made through the brokerage IRA platform.
This initiative is the latest development from the firm’s division dedicated to crypto custody, trading, and management.
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