Just last week, we posted about all of the great changes we made to Alto CryptoIRA® over the past few months. And wow, was it tough keeping this latest update a secret…
Starting October 2021, we are no longer charging monthly account fees on CryptoIRA accounts! That means:
- No account setup fees
- No recurring account fees
- No account minimums (and a $10 investment minimum)
Unless you close or wire money out of your account, all you pay is a straightforward 1% trade fee when you buy or sell crypto using your Alto CryptoIRA. There are no Coinbase fees on top of this amount.
With more than 135 coins available, plus all the tax advantages of an IRA, it’s pretty much a HODLer’s dream.
Why Did We Eliminate CryptoIRA Account Fees?
We’ve spent a lot of time talking to CryptoIRA users about why they chose Alto and how we can make it even better.
Unsurprisingly, straightforward pricing, low investment minimums, and one of the largest coin selections of any crypto IRA were among the top reasons people chose Alto CryptoIRA. Still, we found there was confusion around the monthly account fee.
So we decided to get rid of it altogether. Because like we said in our previous post announcing all of the great updates we’ve made, we’re committed to making Alto CryptoIRA the best crypto IRA out there.
Creating the best product in the industry takes more than just talking to current users, though. So we also interviewed long-time crypto enthusiasts and crypto newcomers alike to understand what they know about crypto IRAs.
What we found is that many people still don’t know they can invest in crypto with an IRA, or that doing so could save them big at tax time. With that in mind, let’s do a quick rundown of what a crypto IRA is and the advantages they offer.
What Are the Advantages of a Crypto IRA?
In short, a crypto IRA is a self-directed individual retirement account that allows you to invest in cryptocurrency. While many crypto IRAs require you to set up an LLC and then create a separate account with an exchange, the Alto CryptoIRA makes it easy. We’ve partnered with Coinbase to allow you to invest in more than 135 crypto assets with none of the hassle of setting up an LLC.
However, the real advantage of a crypto IRA is in its tax-advantaged status. Typically, you’re required to report any sale or trade of crypto on your yearly taxes and calculate net gains and losses. Predictably, this can quickly become a major hassle, because it involves reporting both the purchase and sale amount of every transaction.
Trading gains and losses within an IRA are not reported, though. So by trading crypto within an IRA, you avoid tax reporting as well as tax payment requirements. Not only that; under current law, as long as you wait until you’re eligible to take distributions:
- With a traditional or SEP crypto IRA, you’ll only ever pay income taxes on your distributions since contributions are made using pre-tax money.
- With a Roth crypto IRA, you’ll never pay any taxes on your distributions because contributions are made using post-tax money.
(For more on the tax advantages of CryptoIRA, check out our recent post, How to Avoid Paying Taxes on Crypto.)
IRA Distribution Eligibility Requirements
To begin taking distributions from an IRA, you must be at least 59 ½ years of age. Additionally, a Roth IRA must have been open for at least five years to make a withdrawal. Except for certain exemptions allowed by the IRS, early withdrawals will incur a 10% federal tax penalty.
Invest in Crypto with All the Advantages of an IRA
With one of the largest coin selections of any crypto IRA—plus no recurring account fees, $10 investment minimums, just 1% trading fees, and real-time 24/7 trading—the Alto CryptoIRA could be the best way to invest in this exciting alternative asset class.