Fidelity offers encryption window in 401(k) plans | Ary Rosenbaum – The Rosenbaum PC Law Firm

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Fidelity offers encryption window in 401(k) plans |  Ary Rosenbaum – The Rosenbaum PC Law Firm

Fidelity Investments will allow investors to put bitcoin (BTC) into their 401(k) retirement savings accounts later this year.

Plan sponsors offering it could cap the amount of savings going to bitcoin, with the maximum cap not to exceed 20%.

Fees on bitcoin investments in Fidelity 401(k) accounts would range between 0.75% and 0.90%, depending on the size of the plan. Additional trading fees would be levied which remains undisclosed at the time of writing.

This move by Fidelity came despite the Department of Labor (DOL) issuing a directive that cryptocurrencies were speculative and volatile business investments with inflated valuations. The DOL has expressed “serious concerns” about providers offering cryptocurrencies in pension plans.

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