Alto IRA is a self directed IRA custodian. In this comprehensive review, we’ll cover:
- What to expect when signing up and investing with Alto IRA.
- What we like (and don’t like) about the platform.
- Alto IRA alternatives.
- How to decide if Alto IRA is right for you.
Alto IRA offers a low-cost and easy way to invest in alternative assets — like cryptocurrency, real estate and startups — through a self-directed retirement account. Fees are low compared to the other self-directed IRA custodians we’ve evaluated, as are the minimums ($10 for crypto). Alto IRA is a solid choice for advanced investors looking to diversify their retirement funds.
- Traditional, Roth and SEP IRAs are available.
- A (mostly) flat fee structure benefits larger investors.
- Low fees compared to the industry average.
- You do not hold your own private crypto keys.
- You cannot bring your own deals to the platform.
- No stocks or ETFs.
- No solo 401(k).
What Is Alto IRA?
Alto IRA is a self directed IRA custodian that gives you the ability to invest in a wider range of assets within your IRA compared to most brokers.
While self-directed IRAs have been around since the 1970s (mainly as a vehicle for real estate investors), companies like Alto IRA have recently launched to meet the demand from individuals who want to invest in cryptocurrency (as well as startups and other alternative assets) within their retirement accounts.
Alto IRA itself does not offer investment vehicles. Instead, it provides access to investment options offered by third parties.
How Alto IRA Works
Alto IRA offers two different types of accounts:
- The Alto IRA. This type of account gives you access to Alto IRA’s list of partners, which includes managed crypto funds, private equity, venture capital funds, crowdfunded real estate platforms and more.
- Alto CryptoIRA. This type of account is needed if you plan on investing in cryptocurrency outside of a fund. With this plan, crypto is bought, sold and held at Coinbase.
Alto investors can choose one or both of the IRA or Alto CryptoIRA plans, though a fee is required for each account.
You can transfer your existing IRA, roll over 401(k) funds, or contribute cash to fund your account, keeping in mind that you’re subject to the annual contribution limit (a maximum of $6,500 annually for those under 50, and $7,500 for those over 50, when contributing cash.
The Alto CryptoIRA account allows you to invest in the cryptocurrencies offered on Coinbase through Alto’s interface. In other words, you’re not opening a Coinbase account yourself, but instead investing via Coinbase through your Alto IRA.
This allows you to invest in anything from blue-chip crypto assets like Bitcoin and Ethereum to small-cap coins just launching on Coinbase’s platform. If it’s available on Coinbase (which now has over 200 different currencies) you can purchase it within your Alto IRA.
The cryptocurrency you buy is held in a digital wallet at Coinbase. You do not get access to this wallet, which means you cannot stake or transfer it to a private wallet, nor can you earn interest on your crypto holdings.
Fees for maintaining an Alto CryptoIRA are:
|Outbound wire transfer||$25|
In late 2022, Alto IRA launched a staking pilot program that provided select users with the option of staking SOL (Solana). Users who joined the beta program got a 4% yield on their SOL holdings with a six-month lockup. There was a 25 SOL minimum needed to participate.
Currently, the waitlist to join the pilot staking program is closed. Alto says that it hopes to provide staking opportunities for additional currencies in the future, and we’ll update this article when such opportunities become available.
The Alto IRA allows you to invest IRA funds with a wide range of partners. The Alto IRA Pro plan expands your investment options to include any partner you want to bring to the platform. An example here would be bringing a private real estate fund you invest in to the platform.
Investment minimums vary from partner to partner, and in many cases you need accredited investor status.
Some of the partner types the Alto Alternative IRA gives you access to include:
- Private companies
- Real estate
Popular names on the list include:
- AcreTrader, a crowdsourced farmland investing platform.
- AngelList and Republic, the two most popular angel investing platforms.
- Masterworks, a crowdsourced art investment platform (learn more in our Masterworks review).
One notable exclusion is equities. For those looking to maintain a large stock allocation, such as an index fund, it would be necessary to have another IRA account at a traditional brokerage.
Additionally, it’s worth noting that Alto IRA no longer offers its Pro plan, which allowed users to bring their own deals to the platform. As a result, the account is limited to the list of select Alto IRA partners.
The Alto Alternative IRA fee structure is as follows:
|Plan Features||Starter Plan||Pro Plan|
|Account fee||$10 per month, or $100 per year if paid annually.||$25 per month, or $250 per year if paid annually.|
|Partner investment fee||$10||$10|
|Private investment fee||N/A||$75|
|Inbound funding/rollover fee||$0||$0|
|Account closure fee||$50||$50|
|Outbound wire fee||$25||$25|
Keep in mind that when investing through an Alto IRA partner, you’re also subject to that partner’s fees. For example, the fees for investing through AcreTrader are 0.75% on an annual basis. This fee is on top of what you’re paying to Alto IRA.
The partner investment fee of $10 per transaction also makes the account unsuitable for those who are dollar cost averaging small amounts of money on a recurring basis. In such a case, the $10 fee per transaction will certainly eat away at any potential returns. With this fee structure, you’re better off dollar cost averaging on an annual or quarterly basis versus bi-monthly or monthly intervals.
Here’s a full list of Alto IRA’s investment partners.
Alto IRA Alternatives
As alternative investments continue to gain popularity, a growing number of companies are offering self-directed IRA options to cater to investors seeking to diversify their retirement portfolios.
While Alto IRA stands out for its competitive fees and diverse investment choices, factors such as checkbook control or the ability to invest in a different type of IRA may be more important to you.
Below, we’ve prepared a comprehensive comparison table featuring Alto IRA and its alternatives.
Additionally, we’ll offer a more in-depth comparison to Choice IRA and Rocket Dollar, as these product offerings are the most similar to Alto IRA,
|Platform||Crypto?||Fees||Account Types||Notable Features|
|Alto IRA||Yes, through Coinbase||$10 per month or $100 per year.||Traditional, Roth, SEP.||Access to alternative investments through partners, low fees, and partnership with Coinbase for crypto trading.|
|iTrustCapital||Yes||1% trading fee.||Traditional, Roth, SEP.||Flat 1% trading fee with no monthly account fees.|
|Rocket Dollar||Yes||$15 per month + $360 one-time setup fee.||Traditional, Roth, solo 401(k).||Checkbook control, invest in alternative assets, invest using a private wallet.|
|Equity Trust||Yes||$50 one-time setup fee + $75 annual maintenance fee.||Traditional, Roth, CESA, HSA, solo 401(k), Roth solo 401(k), SEP, SIMPLE IRA.||Wide range of alternative investments and IRA types available.|
|The Entrust Group||Yes||Fees start at $199 per year and vary based on the number of investments and asset size.||Traditional, Roth, SEP, SIMPLE IRA, solo 401(k), HSA, ESA.||Focus on personalized service.|
|IRA Financial Group||Yes||Fees start at $400 per year.||Traditional, Roth, SEP, SIMPLE IRA, solo 401(k).||Offers checkbook control.|
|Coin IRA||Yes||Fees start at $75 with a minimum balance of $5,000.||Traditional, Roth.||Specializes in cryptocurrency investments and secure storage.|
|Bitcoin IRA||Yes||Charges a service fee based on investments.||Traditional, Roth.||Specializes in cryptocurrency investments, secure storage, 24/7 trading platform.|
|Choice IRA||Yes||1% storage fees / 1% trading fee||Traditional, Roth.||Partnership with Kraken for crypto trading, allows investment in individual stocks, gives you the option to hold private keys.|
Alto IRA vs. iTrustCapital
However, iTrustCapital remains a solid low-fee crypto IRA platform worth consideration.
Some key differences between Alto IRA and iTrustCapital include:
- Minimum investment: Alto IRA has a minimum of just $10 to open an account, compared to iTrustCapital’s $1,000 minimum.
- Cryptocurrency selection: Alto IRA provides access to over 200 cryptocurrencies through integration with Coinbase. iTrustCapital currently supports trading 34 cryptocurrencies.
- Fees: Both Alto IRA and iTrustCapital have a competitive 1% fee for buying and selling cryptocurrencies. Neither charges monthly account fees.
Overall, Alto IRA and iTrustCapital offer straightforward, low-cost crypto IRA accounts. Alto IRA’s lower investment minimums give it a slight edge for newer investors.
Read our ITrustCapital review to learn more.
Alto IRA vs. Choice IRA
Choice IRA is an option for those looking to invest in cryptocurrencies within their IRAs.
The main differences between Alto and Choice are:
- Choice allows you to trade crypto on its platform through Kraken.
- Choice offers two plans with different fee structures: the Cold Storage plan, which has a $0 setup fee and a 1% annual fee for digital asset custody, and the Hold Your Own Keys plan, which comes with a $625 setup fee and a monthly fee of $13.33.
- You can also invest in individual stocks through Interactive Brokers.
Learn more in our comprehensive Choice IRA by Kingdom Trust review.
Alto IRA vs. Rocket Dollar
Rocket Dollar is best viewed as an option if you’re specifically looking to invest in asset classes like private companies and startups.
Rocket Dollar is much different from Alto IRA in that you create an LLC, which then holds your assets. This allows you to invest in essentially anything, except for asset types that are prohibited in a retirement account.
One major advantage of Rocket Dollar over Alto IRA is that you’re allowed to make contributions from a solo 401(k). This allows solopreneurs to contribute directly from their company into alternative investments.
Learn more in our detailed Rocket Dollar review.
Alto IRA FAQs
Alto IRA is a third party that doesn’t hold client funds besides cash and doesn’t provide insurance directly. The cash held within an Alto IRA is FDIC Insured. Many partners on the platform do provide some type of insurance, whether that’s through the SPIC, or in the case of crypto, Coinbase’s Account Protection program.
Alto Solutions, Inc. (d/b/a Alto IRA) was founded in 2018 by Eric Satz, who remains the company’s CEO. In 2021, Alto raised $17 million in Series A funding. Unusual Ventures led the funding round, which included names such as Coinbase Ventures, Franklin Templeton and New York Life Ventures. In 2022, Alto raised an additional $40 million in a funding round led by Advance Venture Partners, which included Coinbase Ventures and Unusual Ventures. The company is headquartered in Nashville, Tennessee and currently has more than 15,000 clients.
Alto CryptoIRA Review: Final Verdict
Overall, Alto IRA is a good low-cost SDIRA IRA custodian that offers access to many high-quality investment options for a reasonable fee. In fact, we rated it as our top crypto IRA for these reasons.
If you’re an experienced investor, it can offer additional ways to diversify tax-advantaged funds (with the obvious caveat that this of course comes with additional risk).
Keep in mind, with limited history behind them, alternative asset classes shouldn’t compromise a large percentage of your retirement balance, primarily because of the wide range of outcomes they can produce.
After all, such a wide range of potential outcomes makes it all but impossible to plan for retirement.
Therefore, my rule of thumb is that no more than 10% of my total net worth can be in alternatives. I recommend setting a limit for yourself that allows you to realistically reach your retirement goals.
Visit AltoIRA.com to learn more.