Frequently Asked Questions

For Investors

IRAs

What is a self-directed IRA?
Self-directed IRAs offer the same tax advantages as conventional IRAs. The difference is self-directed IRAs let you invest in a variety of alternative assets historically inaccessible for everyday investors—including private equity, venture capital, farmland, startups, and real estate.

How do I open a self-directed Alto IRA?
Opening an account with Alto is easy and can be done online in minutes. Simply enter the account creation process on altoira.com by clicking on Get started and follow the step by step instructions and requirements.

What does investing with a self-directed IRA offered by Alto cost?
Alto prioritizes simple, transparent pricing that we hope makes investing in alternatives feel approachable and affordable. The Alto IRA charges a quarterly Account Fee based on your invested capital. AltoIRAs may incur additional service fees, if applicable.

What types of self-directed IRAs does Alto offer?
You can open a Traditional, SEP, or Roth self-directed Alto IRA.

• Traditional IRA: Tax-deferred retirement account where contributions may be tax-deductible, and earnings grow tax-deferred until withdrawal.
• SEP IRA: Stands for Simplified Employee Pension IRA, ideal for self-employed individuals or small business owners to save for retirement with potentially higher contribution limits.
• Roth IRA: Retirement account funded with after-tax dollars, offering tax-free growth and – subject to IRS rules – withdrawals during retirement, with potential income limitations for contribution.

Who can set up an IRA?
Anyone can open an IRA, and as long as you’ve received taxable compensation during the year, you can contribute to it.

How can I fund my Alto account?
You can fund your account with cash contributions, IRA transfers, or via a rollover. Alto makes it easy to transfer or roll over funds from an existing IRA, 401(a), 401(k), 403(b), 457, or TSP account, and we don’t charge fees to transfer money into your account.

Can I set up multiple IRA accounts with Alto?
Yes! While there’s no limit to the number of IRA accounts a person can set up, there are limits to how much a person can contribute across all the IRA accounts in a given tax year.

Can I borrow from my IRA?
No. Internal Revenue Code Section 4975 prohibits borrowing from your IRA.

What is the difference between a “standard” IRA and a self-directed IRA?
There is no legal distinction between a conventional IRA and a self-directed IRA. While traditional, Roth, SEP, and other IRAs can all be “self-directed,” most brokerages and custodians don’t allow investments in alternative assets—assets not publicly traded and often illiquid. The Alto IRA gives you the control and flexibility to invest in assets you know and understand.

When can I take IRA distributions?
Save for certain exceptions, you have to wait until you’re 59-1/2 to take distributions (and in the case of a Roth IRA, have had a Roth account for at least five years). For more details, visit IRS.gov.

What are the IRA annual contribution limits?
Total annual contribution limits for individual retirement accounts are set by the IRS, and should be consulted annually via their materials, which can be found here.

What is a required minimum distribution (RMD)?
A RMD is the required amount that Traditional IRA owners and qualified plan participants must start distributing from their retirement accounts by April 1 following the year that they turn 73. RMD amounts must then be withdrawn every year after. Generally, RMDs apply only to Traditional, SEP, and SIMPLE IRAs—not Roth IRAs.

Your RMD is based on your age, your IRA’s previous year account balance, and a “life expectancy factor” that is provided by the IRS. The institution(s) where you hold your account(s) can calculate your RMD.

The IRS documentation on RMDs can be found here.

Alternatives

What are alternative investments?
Alternatives are assets outside the public markets (stocks, bonds, mutual funds, etc.). Alternative investments include shares of private equity, private credit, farmland, startups, real estate, securitized collectibles, and venture capital, among others.

Why invest in alternative assets with an IRA?
An IRA offers unique tax benefits that make retirement capital an exciting funding method for investments into alternative assets. Investing in alternatives with an Alto self-directed IRA means you can legally minimize and potentially even eliminate taxes altogether.

Are there any restrictions on investing in alternative assets with an IRA?
Yes, there are restrictions. As long as an investor doesn’t purchase life insurance, collectibles, or engage in a prohibited transaction involving a disqualified person (your spouse, direct ancestors, and/or descendants), then an investment is allowed.

What documentation is needed to make an investment?
Alto will save you the work of acquiring all requisite documents, instead collecting them for you via the issuer on the Alto dashboard.

Do I need to be an accredited investor to sign up?
Alto supports non-accredited investors as well as accredited investors.

Can Alto give me investment advice?
No. Alto is a provider of self-directed IRAs and does not act as a financial advisor or provide any investment advice.

Can I invest in shares of my own company?
No. IRS rules prohibit investing in any company that you or specific relatives own.

Marketplace

What is Alto Marketplace?
Alto Marketplace is provided by Alto Securities, LLC, and connects accredited investors with a curated selection of sought-after private investments.

Who is Alto Securities?
Alto Securities is the wholly-owned broker-dealer subsidiary of AltoIRA, enabling investors to explore various investment opportunities.

How is Alto Securities regulated?
Alto Securities is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and is a member of FINRA and SIPC.

What’s the difference between Alto IRA and Alto Marketplace?
An Alto IRA is a self-directed IRA allowing investors to purchase private securities with retirement funds. Alto Marketplace allows investors to discover and invest in investment opportunities curated by the Alto Securities team.

Do I need to be accredited to participate in the Alto Marketplace?
Currently, yes, as all offerings available on our Marketplace are limited to accredited investors (AIs) only.

How do I invest in Alto Marketplace Offerings?
From an offering’s page, select the Invest button to begin your investment process. Your investment will then be reviewed.

For Issuers

Marketplace

What is Alto Marketplace?
Alto Marketplace connects accredited investors with a selection of private investment opportunities, ensuring a diverse range of asset classes such as private equity, venture capital, and real estate.

Who is Alto Securities?
Alto Securities is a wholly-owned broker-dealer subsidiary of AltoIRA, presenting various investment opportunities.

How do I submit my offering for listing on the Alto Marketplace?
Complete this inquiry form!

How much does it cost for an investor to invest in a Marketplace offering through their Alto IRA?
Investments into Marketplace offerings require an investor to have a standard Alto IRA. We charge Alto IRAs a quarterly Account Fee based on an investor’s invested capital.

My offering requires investors to be accredited. Does Alto Securities qualify investors before allowing them to invest?
Yes! Prior to investing in a Marketplace offering, the investor is required to complete a Suitability Questionnaire and attest to their accreditation.