Could 401(k) plans be able to invest in Bitcoin?

Alexi Rosenfeld/Getty Images Fidelity, the nation’s largest provider of 401 (k) plans, said on Tuesday that it would enable its participants to put a slice of their retirement money into Bitcoin — if their employers are willing to allow it.

Will Fidelity offer bitcoin as an investment option in 401(k) plans?

Fidelity will offer Bitcoin as an investment option in 401 (k) plans starting sometime in mid-2022. How much plan participants can put into Bitcoin will be determined by their employers, but a maximum of 20% is likely. This is likely to give a major boost to the mainstreaming of cryptocurrency.

Can 401(k) employees add Bitcoin to their accounts?

More specifically, the company announced in April 2022 that they are introducing a digital assets account option alongside its more traditional accounts. This will allow employees with 401 (k) accounts to add Bitcoin to them, for which they will be charged an account fee of between 0.75% and 0.9% of funds invested in the digital asset account.