Fidelity Investments has officially launched zero-fee crypto retirement plans, allowing US investors to gain exposure to Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) through individual retirement arrangements (IRAs). This move reinforces Fidelity’s commitment to digital assets, making crypto investing more accessible for long-term retirement planning.
Fidelity Crypto IRA—What Investors Need to Know
Fidelity’s new crypto IRAs are available to US citizens over 18 residing in states where Fidelity Digital Assets supports individual retirement accounts. The firm is offering three types of IRAs, catering to different tax strategies:
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Roth IRA: Contributions are made with after-tax money, allowing for tax-free withdrawals in retirement.
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Traditional IRA: This offers tax-deferred earnings growth, meaning taxes are paid only upon withdrawal.
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Rollover IRA: Enables 401(k), 403(b), or IRA transfers from previous employers into a crypto-backed retirement account.
To open a Fidelity Crypto IRA, investors must hold a Fidelity brokerage IRA of the same registration type, which serves as a funding account for cryptocurrency investments. If a qualifying brokerage IRA is not already in place, Fidelity will automatically open one during account setup.
No Maintenance Fees, But a 1% Trading Spread
Fidelity’s crypto IRA has no maintenance fees, making it an attractive option for long-term investors. However, the company applies a 1% spread on buy and sell orders, which represents the difference between the price a customer receives and the price at which Fidelity Digital Assets sources the asset.
Additionally, Fidelity’s decision to support only Bitcoin, Ethereum, and Litecoin highlights its focus on established cryptocurrencies with high liquidity and market stability.
Seamless Integration With Traditional Retirement Accounts
One of the standout features of Fidelity’s new offering is its integration with existing retirement account features. Investors can:
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Manage beneficiaries through their Fidelity brokerage IRA.
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Transfer funds seamlessly between the linked brokerage IRA and the crypto IRA.
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Trade digital assets within a secure environment backed by Fidelity Digital Assets.
Fidelity Strengthens Its Crypto Presence
This launch further solidifies Fidelity Digital Assets as a leader in crypto custody, trading, and investment management. The firm has been actively expanding its digital asset services, catering to both institutional and retail investors.
As more retirement investors seek exposure to crypto as a long-term asset, Fidelity’s zero-fee crypto IRAs could pave the way for the broader adoption of Bitcoin and Ethereum in traditional investment portfolios.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
