This guide maps AltoIRA or Alto IRA in detail. We will start from the very scratch of what an IRA is, what a self directed IRA is and then try and explain Alto IRA in detail. We will discuss its features, its pros and cons and also will check the reviews it has gained over the time of its existence. We will unwrap few FAQs and finally write our conclusion. Let us begin.
Table of Contents
What is AltoIRA or Alto IRA?
Alto IRA is a self-directed IRA. But what is a self-directed IRA or IRA for that matter? If you already know these answers you can skip the following sections and jump straight to the “What is Alto IRA” section. If otherwise stick with me to unwrap the basics first.
What is an IRA?
Alright, an IRA or Individual Retirement Account is a savings account for your retirement days. The savings in your IRA account also gives you a tax advantage (though there is a limit on the annual investment amount up to which you get these tax benefits). Besides, you are allowed to invest your IRA savings in different financial products like stocks, bonds, exchange-traded funds (ETFs), and mutual funds. So, 5 key takeaways about an IRA:
- It is like a 401(k) account. But, unlike 401(k), you do not need an employer to open your IRA account.
- Anyone (employed, business or freelancer) with earned income can open an IRA account.
- The IRA can be opened at a bank, an investment firm, or a broker.
- The investment in an IRA offers a tax advantage
- An IRA gives you the option to invest in different financial products like stocks, bonds, exchange-traded funds (ETFs), and mutual funds.
What is a Self-Directed IRA?
Self-directed IRAs are a type of IRA, where investors are given a bit more freedom in terms of investment decisions and investment options. Two key takeaways for Self-directed IRAs:
- Self-directed IRAs (SDIRAs) offer alternative investment options than those standard options provided by a regular IRA. Besides the general (yet more safer options) investment options provided by regular IRAs, Self-directed IRAs also give you the option to invest in precious metals, commodities, private placements, limited partnerships, tax lien certificates, real estate, crypto, and other sorts of alternative investments.
- Although SDIRAs are managed by you (you take the investment decisions), they are administered by an IRA-approved custodian.
What is Alto-IRA?
- As mentioned, Alto IRA is a type of Self Directed IRA. Alto IRA facilitates investments in alternative asset classes from your IRA savings. Since these asset classes like precious metals, cryptocurrencies, etc. can make huge gains, Alto IRA helps in potential growth in accumulated savings in your IRAs.
- Reiterating, like other IRAs, Alto IRA also provides tax advantages on your savings and investments.
- In fact Alto is a brokerage firm which helps you to invest in multiple alternative investments like cryptocurrencies, real estate, precious metals, etc. using the fund in your IRA account. It partners with cryptocurrency exchanges, real estate lending firms, angel investment firms to facilitate the alternative investments via your IRA account.
- There are two types of accounts you can choose from, when you open an Alto IRA account.
Standard Alto IRA account and
Alto crypto IRA
Let us look at both of these two sub-accounts, one by one.
Standard Alto IRA
Alto IRA allows you to invest the funds in your IRA account to alternative investments like startups, farmlands, art, precious metals, and more. Alto IRA has partners to facilitate these alternative investments. Some of the notable partners are AcreTrader (Real Estate investing), AngelList (startups), CapitalEngine (capital markets), FarmTogether (farmlands) and more.
What are the Fees in Standard Alto IRA?
Alto IRA has a competitive fee as compared to other IRA providers. There is no custody fee and no investment fee. You are charged a monthly or annual account fee and an account closing fee. Please check the table below.
| Parameter | Fee |
| Account Fee | $10 per month or $100 if paid one time for the entire year. So, you save $20 when you pay the account fee for the year at once. |
| Custody Fee | Zero |
| Direct Investment Fee | Zero |
| Outbound Wire Transfers | $25 |
| Account Closure Fee | $50 |
Alto-Crypto IRA
As the name suggests, Alto crypto IRA allows you to invest in cryptocurrencies. It partners with Coinbase which facilitates investment into over 200 different cryptocurrencies.
Read 6 best crypto IRA to diversify your retirement funds
Some of the features of the Alto crypto-IRA worth noting are:
- Insurance to your funds: Coinbase provides an insurance coverage to the funds stored in Alto-IRA.
- The number of cryptocurrencies the Alto- IRA allows investments to: Supports over 200 coins and tokens including Bitcoin, Ether, ADA, Apecoin and more. Check this.
- Minimum amount needed to open an account: AltoIRA only needs an initial minimum investment of $10 to start your account.
- Associated Fees: Low fees. No account maintenance or setup fees.
Only a straightforward 1% trading fee per transaction. - Supported IRAs: traditional IRAs, SEP IRAs and Roth IRAs.
- Quality of Customer Services: Good.
- Ease of setting up the account and the most important: Easy. Offers a free concierge service to help walk you through setting up and funding your account.
- Security of funds in the IRA: The security is provided by Coinbase. Coinbase stores your cryptos in offline storage. Read more here.
What are Alto IRA crypto Fees?
Unlike Alto IRA, there is no monthly fees charged in an Alto-crypto IRA. There is a trading fee of 1%. Check the table below for all the associated fees in Alto-crypto IRA.
| Parameter | Fee |
| Account Fee | Zero |
| Custody Fee | Zero |
| Direct Investment Fee/ Trading Fee | 1% |
| Outbound Wire Transfers | $25 |
| Account Closure Fee | $50 |
Is alto crypto IRA legit?
Alto IRA has managed to gain the trust and support of customers, which is evident by the reviews it has received in platforms like TrustPilot. Besides, it has witnessed increased adoption owing to its low fees, easy navigation, and diverse investment options. It provides you the option to choose from over 200 cryptocurrencies to invest your IRA funds.
It has received an excellent 4.4/5 rating in Trustpilot, with over 991 total reviews received at the time of writing this guide. Please check the ratings here.
Alto IRA has publicly shared address, contact and email at Trustpilot, which further adds to the legitimacy of the company.
Please note that Alto IRA was hacked in 2021. Although few user credentials were compromised, there were no loss in funds.
How does Alto crypto IRA work?
Step 1: Sign up
Visit the Alto IRA sign up page here. Enter your name, email and phone number to sign up.
Step 2-Choose the mode of transferring your funds to your Alto IRA account
Once you enter your name, email and phone, the portal will ask you the mode of funding your Alto IRA account.
You can choose to transfer funds from your existing 401 (K) account, an existing IRA account or any other retirement account or from your bank account.
You may choose the ‘unsure’ option in case you are not sure at the time. Or you can choose to speak to a professional.
Step 3: Create your account
The next step is to create your account. Click on “Create Account” as shown in the figure below.
Provide your email and password to open your account. Read and accept the “Terms of Service”.
Step 4: Complete your verification
Alto IRA will send an email verification link at your email id.
Simply go to your email and click on the verification link. In few seconds/minutes your email address will be verified.
Once your email is verified, Alto IRA will begin your personal verification. Alto crypto IRA needs to verify your identity to remain compliant with the Federal regulations. See below.
The verification will require you to provide your personal details like birthday, Social Security No. and more.
Once the verification is completed, then only you can start investing in any of the financial products offered. The verification in most cases is instantaneous which takes only few minutes. In some cases the team of Alto IRA can contact you separately to ask some additional KYC questions.
Step 5: Start Investing
Once the verification is done, now its time to select one of the sub accounts-Alto IRA or Alto crypto IRA , fund your Alto IRA account and start investing.
Note: Alto IRA requires at least 7 days for you to start your investments after you have completed your verification/KYC. In these 7 days, however you can fund your account.
Is Alto IRA Secure-FAQs
Alto IRA has implemented multiple measures to make your cryptocurrencies secure.
Two factor authentication: Alto IRA offers two-factor authentication powered by Authy or Google Authenticator.
Security for cryptocurrencies: In Alto IRA, cryptocurrencies or tokens are bought and sold using Coinbase (when you choose Alto crypto IRA).
Coinbase keeps your digital assets in hot or cold storage.
Insurance: Digital assets with Coinbase are protected by a commercial crime policy of up to $320 million. Furthermore, digital assets with Coinbase are protected by a cybercrime policy of up to $3 million
On the other hand, Alto is the custodian of your assets and funds. You do not directly own your assets and funds. Although Alto claims that your funds and assets are kept separately and are not used in its own operations.
Is Alto IRA insured?
Your funds in Alto IRA are secured up to $250,000 by Federal Deposit Insurance Corporation (FDIC) insurance. However, there is no insurance for funds invested in the financial products like cryptocurrencies, farmland, etc.
For cryptocurrency investments, your funds whether held in cash or invested in cryptocurrencies are stored securely in cold storage in Coinbase. Besides, Coinbase provides an insurance coverage limit of $320 million (per incident and overall), as well as a $3 million cyber crime insurance policy.
What happens to my funds if Alto IRA ceases to do business?
As suggested by Alto IRA, your funds will be secure. If in case Alto IRA ceases to do business, your funds will be transferred to a new custodian. The custodians are monitored by state regulators who ensure that your funds are taken care of and not used for the custodian’s own benefit.
Is Alto regulated by the Securities Investor Protection Corporation (SIPC)?
No, Alto IRA is not regulated by SIPC. Alto IRA is not a broker or investment advisor, but rather an administrator of your IRA retirement funds.
Who is Alto IRA insured by?
Alto IRA policies and records are subject to audit and oversight by the New Mexico Financial Institutions Division Regulation and Licensing Department. We maintain stringent anti-money laundering and information security policies and compliance training for all employees.
Is Alto IRA a custodian?
Yes Alto IRA is a custodian. It acts as an administrator of your self-directed IRA account, facilitating investments into diverse assets like real estate, startups, cryptocurrencies and more.
Your funds in Alto IRA are secured up to $250,000 by FDIC insurance. However, there is no insurance for funds invested in financial products.
For cryptocurrency investments, your funds whether held in cash or invested in cryptocurrencies are stored securely in cold storage in Coinbase. Besides, Coinbase provides an insurance coverage limit of $320 million (per incident and overall), as well as a $3 million cyber crime insurance policy.
Alto IRA Contact Details-FAQs
What is Alto IRA phone number?
(877) 673-1557
You can even submit your doubt and questions here.
What is Alto IRA address?
500 11th Ave N Suite 790, Nashville, TN 37203, USA
Conclusion
Alto IRA is a trusted SDIRA platform, to invest your IRA funds to a wider financial portfolio like farmland, precious metals, cryptocurrencies, startups, art and more. It has gained traction among the investors owing to its lower fees to operate, easy navigation and good reviews among the users. It offers two types of accounts standard Alto IRA and Alto crypto IRA. While standard Alto IRA allows investment of your IRA funds to farmlands, art, startups, etc. Alto crypto IRA allows investments into 200 different cryptocurrencies and tokens.
