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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.

Yes, there are restrictions, but not many. The Internal Revenue Code makes those distinctions. In general, as long as an investor doesn't purchase life insurance, collectibles, coins, real estate that is designated for personal use, or engage in a prohibited transaction involving a disqualified person (your spouse, direct ancestors, and/or descendants), then an investment is allowed. However, some alternative assets may be limited to accredited investors, which require you to have a minimum net worth or annual income.

This still leaves plenty of alternative investment choices. Alto has built tools into its platform to help you avoid prohibited investments, though it's always wise to consult a tax professional before moving forward with an investment.

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. In Traditional and SEP IRAs, taxes are typically deferred on gains until withdrawal. When investing with a Roth IRA, qualified withdrawals are generally tax-free, with applicable IRS rules to consider.

Investing with a self-directed IRA also gives you access to capital that is otherwise locked away until later in life. This means you can strategically align the long term time horizon of capital earmarked for retirement and alternative assets that have longer than typical commitment periods – an investing match made in duration heaven.