An individual retirement account could just be the best way to invest in alternative assets, given their potential for outsized returns.
No matter how much your investment grows, with an IRA, you’ll never pay taxes on gains. Additionally, you may be able to avoid taxes altogether. With a traditional and SEP, you pay no taxes until you take a distribution, and with a Roth IRA, you pay no taxes on gains. Save for certain exceptions, these tax advantages require you to wait until you’re 59-½ to take distributions (and have had an account for at least five years in the case of a Roth IRA).
Regardless of which you choose, this is particularly advantageous for crypto investors. If you buy and sell crypto outside a qualified (meaning, tax-advantaged) account, you are required to report each and every transaction on your taxes. However, doing so within an IRA enables you to avoid this often-tedious process.
Not only that, investing with an IRA gives you access to capital that is locked in other retirement accounts. (For most Americans, their largest source of investable assets.) Alto makes it easy to roll over funds from an existing 401(k), 403(b), 457, or TSP account, and we don’t charge fees to transfer money into your account.