How do I fund my alto account?

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How do I fund my alto account?

Alto IRA supports a number of ways for you to fund your account to get you on your way to investing in alternative assets!

  1. Cash Contribution
  2. IRA Transfer
  3. Rollovers (Direct & 60-Day)

Cash Contribution

A cash contribution refers to the money that you deposit into an IRA from a personal bank account and is subject to the annual contribution limit, according to the IRS. To learn more about how much cash you can contribute annually to a Traditional, Roth, or SEP IRA, please visit the IRS website or check with a tax professional. 

IRA Transfer

An IRA transfer refers to the money transferring cash from one IRA to another. IRA transfers do not count towards the annual contribution limit like cash contributions would, and there is no limit on how many can be completed in a given tax year.

However, the IRS does restrict what kinds of retirement accounts can be transferred to another retirement account. Depending on what kind of IRA you are transferring the money from, that IRA transfer may be subject to tax-withholding. Visit the IRS website here to learn more about IRA transfers, take a peek at this rollover chart by the IRS,  or check with a tax professional. 

Rollovers (Direct & 60-Day)

A rollover refers to when you take a distribution from a qualified plan (401k, 403B, etc.) and deposit it into another retirement account. People often rollover their retirement funds from a previous employer’s plan to another retirement account. There are two types of rollovers: Direct Rollovers and Indirect Rollovers (60-Day Rollovers)

A direct rollover occurs when the custodian of the retirement account you wish to transfer money from sends a rollover check (or wire) directly to the custodian of another retirement account. In this case, taxes will not be withheld from your rollover payment.

An indirect rollover, or a 60-day rollover, refers to when you take possession of a distribution from a retirement account to deposit into another retirement account. Once your transferring custodian sends you a rollover check, you have 60 days to deposit these funds into another retirement account. If this isn’t completed within 60 days, the rollover amount will be counted as a distribution in the eyes of the IRS, and you will be required to pay taxes on that distribution.

Please visit the IRS website here to learn more about the different rollovers.

Here are the timeframes around funding your account:

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