Fidelity offering bitcoin investment in pension plan

News / Rik Wienke

American financial services firm Fidelity Investments will allow investors to add bitcoin to their 401(k) pension savings plan. A 401(k) is a plan in which employees put a part of their gross salary to invest in funds. This plan is exempt from income taxes, which makes it a very popular way of saving.

Before this, the fund only invested in shares, bonds and index funds, but Fidelity expects to add the option to invest in bitcoin during this year. Employees can put at most 20% of their pension savings into bitcoin, for a fee of 0.9%. Fidelity manages the pension plans of about 23,000 American companies and more than 20 million employees.

The US Department of Labour has expressed concerns about Fidelity’s plans. In spite of the potential of cryptoassets, the ministry thinks bitcoin has not matured enough and is too volatile for adding to a pension plan. Fidelity sees bitcoin as an investment that holds its value well, following ever more established parties in going against the ministry’s line.

Building up a pension in bitcoin isn’t a new thing for us at AMDAX. We facilitate employers with our services and offer their employees the possibility of saving bitcoin for later. At AMDAX, all of our employees are saving for their pensions in bitcoin.

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