Overview: Checkbook+ IRA

Our Checkbook+ IRA product gives investors the ability to write checks directly from their IRAs, and is often utilized to facilitate real estate transactions and the ongoing maintenance of real property.

IN THIS ARTICLE:

Is a Checkbook IRA Right for You?

Alto Fees for Checkbook IRAs

How Establish a Checkbook+ IRA

Frequently Asked Questions

Is a Checkbook IRA Right for You?

This product may be a good fit for your investment plans if any of the following use cases apply to you:

    • You plan to use your IRA to invest in alternative assets such as real property or cryptocurrency.
    • You want to directly and solely manage your IRA investments without the involvement of an IRA custodian.
    • You want more control over the timing and execution of your alternative investments.

Alto Fees for Checkbook IRAs

Checkbook+ IRAs have two types of fees, a one-time account setup fee and monthly account admin fees.

Account Setup Fee Monthly Account Admin Fees
A one-time fee that is charged to your credit card on file to cover the expenses of your LLC setup.  Recurring fees that are charged to the credit card on file to cover the account maintenance and tax reporting that Alto files with the IRS on your behalf. These monthly fees are based on the total account size for that month.

Learn more about our pricing for Checkbook+ IRA on our website here

How to Establish a Checkbook+ IRA

1 . Create & set up your Alto Investor Account

Start by creating an investor account on our platform and setting that account up as either a Traditional, Roth, or SEP IRA. 

Learn how to create and set up your Alto investor account in our walkthrough linked below:

How to Create and Set Up Your Investor Account

2 . Fund your Alto IRA

Once your IRA is set up, you can request a Checkbook LLC right from your dashboard. This process will allow you to E-Sign for your Operating Agreement and SS-4 tax form.

You can learn the different ways to fund your Alto IRA in our article linked below:

How to Fund Your Alto IRA

3. Create, set up, and transfer funds to your Checkbook LLC

Once your investor account is set up and you've started to fund your Alto IRA, you can request a Checkbook LLC right from your dashboard. 

See how you can create, set up, and transfer funds to your Checkbook LLC with our walkthrough linked below:

How to Create, Set Up, and Transfer Funds to Your Checkbook LLC

Frequently Asked Questions

What is Alto’s involvement in my investments if I have a Checkbook LLC?

Alto will serve as your IRA custodian and will facilitate your cash transfers from your IRA to your business checking account. You’ll be in charge of signing any investment paperwork and managing your active investments off our platform.  You will also need to find a banking partner that you would like to work with, and establish a business checking account once we provide you with an EIN for your Checkbook LLC.

Will Alto still execute investments on my behalf once I have an active Checkbook LLC in my Alto account? 

Once the funds have been transferred from your Checkbook LLC to your business checking account, you may use those funds to complete investments anywhere that will accept your funds from an LLC.  However, Alto is not able to assist you in completing these investments, our functionality in this product line is limited to sending funds from your AltoIRA, to your Checkbook IRA bank account. 

What can’t I invest in with my Checkbook LLC?

Alto cannot give you investment advice, nor will we keep track of the investments that you make with your IRA funds once those funds enter your business checking account, once per year, we will ask you to supply the valuation of your Checkbook LLC so that we can report accurately to the IRS.  We encourage you to follow IRS regulations for investing with your IRA funds to avoid committing a prohibited transaction according to the IRS. You can learn more about prohibited IRA transactions here

Where will my LLC be registered?

We register all our Checkbook LLC with the state of Arizona.  At this time there is not an option to register your LLC in another state.

Can I use my Alto account that has an active Checkbook LLC to execute any investments on the Alto platform?

After your Checkbook LLC is active, you will not be able to execute alternative investments directly on our platform. For an example, you won’t be able to commit to any deals on our partner investing platform by connecting your Alto account to that deal to execute that investment. The same is true for any investments that aren’t available on any of our partner platforms. You’ll have to commit to deals with your Checkbook LLC information. 

How long does it take to set up a Checkbook LLC?

Once you’ve completed the request process on our platform, it should take between 10 - 14 business for you to receive an IRS registered EIN, allowing you to establish a business bank account at your preferred banking provider. 

How long does it take to transfer funds from my Alto IRA to my business checking account?

Fund transfers from your Alto IRA to your business checking account should take anywhere between 2 - 3 business days to complete as we send them via ACH.

Can I request a Checkbook LLC if my account already has active investments?

Unfortunately, you won’t be able to request a Checkbook LLC if your Alto account already has active investments. If you’d like to have a Checkbook LLC, then you’ll have to create a new Alto account and request it from there. 

Can I cancel my Checkbook LLC at any time?

You can cancel your Checkbook LLC from your Alto dashboard and receive a refund of your Account Setup Fee, as long Alto has not began processing your LLC application. 

What kind of tax documents will Alto file on my behalf for a Checkbook LLC?

Alto will file a 5498 with the IRS for your AltoIRA account and provide you with a 1099 to reflect any contributions that have been made into your AltoIRA account for that tax year. 

Will I need to pay any other fees besides the fees that Alto charges?

Depending on where you live, you may acquire additional fees from your state for your LLC.  For example, there is an annual franchise tax of $800 for all California residents that manage an LLC.  These fees are the responsibility of the IRA owner.

 

Do you have more questions? Feel free to send us a note to help@altoira.com or use our Contact Us form to reach one of our Client Experience Advocates!