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Fidelity to offer bitcoin option in retirement plans, making it a reality for more amid warnings

Bitcoin 401k
Posted at 10:41 PM, Apr 27, 2022
and last updated 2022-04-27 22:41:14-04

Retirement giant Fidelity said on Tuesday that it has launched a way for workers to put some of their 401(k) savings and contributions directly in bitcoin.

Fidelity says it is the first in the industry to allow such investments without having to go through a separate brokerage window, and the company has already signed up one employer that will add the offering to its plan later this year. Fidelity's offering may be one of just a few for a while, given the substantial concerns about the riskiness of cryptocurrencies.

The U.S. government warned the retirement industry last month to exercise "extreme care" when doing something like this.

As NerdWallet noted in a statement, Fidelity is considered a legacy investment brand, while cryptocurrencies have been considered on the fringe of the investment world. The move makes this not only historic news but signals a push to move cryptocurrencies closer to the mainstream of the financial world.

Dave Gray, Fidelity's head of workplace platforms and products said, "We have a number of clients that have committed and a number of others in the evaluation process."

As CNN reported, limits on contributions will be set. Fidelity reportedly won't allow any employer to set a limit that is above 20%, citing a statement from Gray.