Invest In Royalties Through A Self-Directed IRA

  in Company Updates, Investing News

Oct 01, 2020

Royalty Exchange has partnered with Alto IRA to give investors the option to acquire royalties through a self-directed IRA. 

Here’s how to take advantage of this new feature.

First, set up and fund an account with Alto IRA. It’s free to set up an account, although Alto charges a fee for each transaction and a monthly administration fee based on the amount funded. It takes about 7 - 10 days for the account to become active and funded. 

Once funded, you can bid on auctions or make offers in the Secondary Market as you do normally. When you bid on new royalties, simply give us a call or send us an email to let us know that you want to use your Alto IRA to fund the transaction. 

Note: Investors remain required to fully fund any acquisition on the Royalty Exchange marketplace within two days of a sale closing. Your Alto IRA account must be fully funded with your bid/offer amount before you place any bids on the marketplace. 

Your Alto IRA will then be the “purchaser” of the asset and Alto will sign the closing documents and initiate the transfer of funds on your behalf on the day of closing. 

Royalty Exchange will then make all future royalty payments to your Alto IRA. All 1099s and other paperwork will also be sent to Alto IRA. As the investor, you will be responsible for reporting valuation information annually.

An added benefit of joining Alto IRA is access to the other alternative investment options the brokerage provides. Feel free to visit their website for more information on those options. 

Questions

Q: Can I transfer funds from a different IRA custodian to fund the Alto IRA? 

A: Yes. Transferring funds from one IRA to another is tax free. 

Q: Can I move previously acquired royalty assets into my Alto IRA? 

A: No, only newly acquired royalties are eligible.  

For more, visit the Alto IRA FAQ page