Labor Department Criticizes Fidelity’s Plan to Put Bitcoin on 401(k) Menu

The Labor Department has expressed concerns about retirement security as Fidelity Investments plans to allow investors to put bitcoin into their 401(k) accounts. Despite the hype surrounding cryptocurrency, there is concern about the volatility in prices and the lack of regulatory framework at this stage in development.

Fidelity is allowing 23,000 companies to add bitcoin as an option to 401(k) services, allowing workers to allocate as much as 20% of their nest eggs in bitcoin. Employers have the ability to reduce this threshold.

Fidelity asserts their commitment to evolving and broadening digital assets across investor segments and the belief that technology is part of the financial industry’s future.

For more information:

See Anne Tergesen, “Labor Department Criticizes Fidelity’s Plan to Put Bitcoin on 401(k) Menu”, The Wall Street Journal, April 28, 2022.

Special thanks to David S. Luber (Florida Probate Attorney) for bringing this article to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2022/05/labor-department-criticizes-fidelitys-plan-to-put-bitcoin-on-401k-menu-1.html