Alto x Cadence FAQs

Invest in short term, high yielding notes with your Alto IRA

General

What are the fees associated with investing on Cadence through an Alto IRA?
How long will my investment take to fund?
How do I invest in Cadence with an Alto IRA?

Cadence

What is the minimum investment size?

What happens when my investment matures?

What types of investments does Cadence offer?

How do I know if I am an accredited investor?

AltoIRA

What types of IRA accounts does AltoIRA support?

How do I fund an Alto IRA?

Can I invest directly from my existing retirement account?

How do I access tax documents for my Alto IRA?

What is a Form 5498? When will I receive my Form 5498?

What is a 1099-R? When will I receive a Form 1099-R?

 

General

What are the fees associated with investing on Cadence through an Alto IRA?

Cadence investors can expect a one time investment fee at the time of investment, and a monthly account fee based upon account value. Reinvestments into notes will not incur an additional investment fee. Learn more about Alto's transparent pricing here

How long will my investment take to fund?

Your investment can fund in as little as 7 calendar days from creating your Alto IRA account, which is the minimum required waiting period for new IRAs as dictated by the IRS. If you are rolling over an existing retirement savings account into a new self-directed retirement account with AltoIRA, your funding process may take longer depending on your existing custodian. Alto’s Support team will work with you directly to ensure account funding happens as efficiently as possible.

For more information regarding timing of fund transfers specific to your existing IRA custodian, please click here.

How do I invest in Cadence with an Alto IRA?

Alto has partnered with Cadence to make IRA investing a breeze. Check out our walkthrough here for a step-by-step guide. 

 

Cadence

What is the minimum investment size?

Cadence offers competitive minimums, with some opportunities available for as low as $500. 

What happens when my investment matures?

Upon maturity, the principal and yield of the investment will be transferred back into your Cadence account. A credit will be reflected in your account balance. At this point, you may elect to transfer the funds to your AltoIRA if you are not investing in another Cadence opportunity. 

What types of investments does Cadence offer?

Currently, Cadence is offering short-term debt investments with competitive risk-adjusted returns. All offerings are securities exempt from SEC-registration under Regulation D, adhering to Rule 506(b). Returns are based on the performance of underlying assets such as factored invoices, and merchant cash advances that are selectively sourced through our originator partner network.

How do I know if I am an accredited investor?

There are two ways of establishing accredited investor status:

You have earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expect the same for the current year

OR

You have a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

 

Alto

What types of IRA accounts does AltoIRA support?

AltoIRA supports SEP, Roth, and Traditional IRA types. 

How do I fund an Alto IRA?

You can easily fund your AltoIRA by following the steps in this walkthrough

Can I invest directly from my existing retirement account?

Even if you have an existing IRA with another provider, you will need to open an account with Alto because the vast majority of IRA plans will not allow you to invest in non-publicly traded opportunities like those offered on Cadence.

How do I access tax documents for my Alto IRA?

You can access tax documents at any time by visiting the Tax Center located in your settings.

What is a Form 5498? When will I receive my Form 5498?

Form 5498 reports contributions, including rollovers and any relatable, taxable events, made to an IRA for the current tax year. You may receive a Form 5498 if your qualified retirement plan was automatically rolled over to an IRA for you at AltoIRA, or you made any other current year contributions. Form 5498  is also used to report the fair market value (FMV) of your IRA as of December 31 of the reporting year. 

This form will be posted to the Tax Center section of your Alto IRA account by May 31 of each year for the preceding tax year. Alto IRA will also report such documents to the IRS on your behalf.

What is a 1099-R? When will I receive a Form 1099-R?

You may receive a Form 1099-R if your qualified retirement plan rolled over to an IRA at AltoIRA, you took a taxable distribution, or you executed a direct rollover to a current employer's qualified plan from your IRA at AltoIRA.

AltoIRA will provide your Form 1099-Rs through your Alto IRA account by January 31 for the preceding tax year, accessible through the Tax Center of your AltoIRA account. AltoIRA will report such documents to the IRS on your behalf.