Carry Alternatives

Alternative investing works differently depending on your account type. For Solo 401k investments, we open an associated bank account under your Solo 401k plan. For IRA investments, we open an associated custodial trust account with American Estate and Trust (AET). Once these accounts are established, your retirement funds can be directed to them and then invested directly in alternative assets. This structure ensures your alternative investments maintain their tax-advantaged status within your retirement accounts.

Currently, there are no additional account fees for investing into alternative assets in your IRA or Solo 401k (crypto investments are subject to separate fees).

All investing involves risk, including loss of principal. Alternative investments are typically higher risk, less liquid, and more complex than traditional investments. They often require longer holding periods and may be difficult to sell quickly. These investments are generally suitable for experienced investors with higher risk tolerance and are not appropriate for all investors. Consider consulting with a financial advisor before investing in alternatives.

You are responsible for sourcing your own alternative investment opportunities. Carry does not provide a marketplace or recommend specific alternative investments. You’ll need to identify opportunities through your own research, networks, investment groups, or other sources. Once you find an investment you want to pursue, we help you facilitate the transaction through your retirement plan.

Solo 401k accounts: As plan administrator, you’re fully responsible for all compliance, including ensuring investments don’t violate prohibited transaction rules, filing Form 5500 if required, monitoring UBIT/UDFI obligations, and taking RMDs. You handle all compliance independently.

IRA accounts: Your custodian (American Estate & Trust) provides administrative oversight and may flag potential issues, but you remain ultimately responsible for compliance. AET assists with certain administrative aspects like document collection, but you must direct all investment decisions and ensure IRS compliance.

Key compliance requirements for both account types:

• Prohibited Transactions: No transactions with yourself, family members, or related parties (e.g., buying property from yourself, renting IRA property to relatives)
• UBIT/UDFI: Active businesses or debt-financed investments may trigger taxable income requiring Form 990-T filing
• Investment Restrictions: Cannot invest in life insurance, most collectibles, or S-corporation stock
• RMDs: Must take required distributions starting at age 73-75

We strongly recommend consulting a tax advisor before making alternative investments, especially for Solo 401(k)s where you bear full administrative responsibility.

You can invest in a wide range of alternative assets including real estate properties, private companies, private funds, LLC interests, and stock purchases in private companies. The specific investment you choose must comply with IRS rules for retirement accounts, and you’re solely responsible for sourcing, vetting and managing these investments. Note that crypto-related investments are not available through Solo 401k alternative investment accounts, only IRAs. For more info on crypto, see [here – add crypto page link].

Alternative investments don’t have daily market prices like stocks, so you’ll need to track valuations for each the investment itself—through statements, reports, valuation policies or updates from the investment issuer. You can manually update these values on Carry to keep general track of your total account balances, but you’re ultimately responsible for the any ongoing valuation requirements, reporting and record keeping.

When your alternative investments generate distributions, funds can be sent directly back to your associated IRA or Solo 401k alternatives accounts. Once funds are received, we make it easy for you to redirect those funds elsewhere on the Carry platform for further reinvestment.

Alternative investment transactions typically take several days to complete, and sometimes longer depending on the complexity of the investment and how funds need to be transferred. This is not a quick process—each investment requires verification, compliance checks, and coordination with multiple parties. If you’re looking to get into a deal quickly, alternative investments through retirement accounts may not be suitable due to the required administrative steps and processing time.

Fund protection depends on your account type:

• Solo 401k: Alternative investing is done through your Solo 401k bank account, powered by Grasshopper Bank, a FDIC member. Cash balances in your bank account are eligible for FDIC insurance up to $250,000. Once funds are invested in alternative assets, they are no longer FDIC covered.
• IRA: Alternative investing is done through your custodial trust account with American Estate and Trust, a Nevada-based trust company. These accounts are not FDIC or SIPC covered.