We’re excited to announce that you’re now be able to invest on Upstart with an Individual Retirement Account! Investing in Upstart loans can be a great way to earn a solid returns with low volatility and monthly cash flow – now you can take advantage of the tax advantages of an IRA while investing through Upstart.
Benefits Of Investing With An IRA
The primary benefit is tax deferred growth. The graph below shows the growth of a $100,000 investment over 25 years. This scenario assumes a 7% annual return and a tax rate of 30% on returns. The tax deferred account would be worth approximately $540,000, while the taxable account would be about $330,000.
Funding Your IRA
Once you create an IRA with Upstart, there are several options for how to fund your account and begin investing in Upstart notes. You may take advantage of one or multiple of these options.
- 401(k) Rollover – If you have a retirement plan such as a 401(k) or a 403(b) with a previous employer, you can roll over those funds to an Upstart IRA. Our preferred custodian, SDIRA, offers a fast and simple rollover service.
- IRA Transfer – You can transfer funds from another IRA to your Upstart IRA1
- Contributions – You can contribute up to $5,500 (or $6,500 if you are age 50 or over) per the tax year to an IRA.2
Additional Features of a Self-Directed IRA
Upstart has partnered with SDIRA Services to offer a self-directed IRA. This partnership provides the option of investing not only in Upstart notes, but in a variety of additional asset classes based on your investment objectives.3
- Upstart Notes
- Mutual Funds
- Brokerage Accounts
- CDs-Certificates of Deposit
- Public REITs, LPs, and LLCs
- Trust Deeds / Mortgages
- Private LPs and LLCs
- Promissory Notes
- Corporate Debt Offerings
Currently only residents of the following states can hold an Individual Retirement Account at Upstart: Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New York, Oklahoma, Rhode Island, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
1 Limitations and/or fees may apply. Please contact your current IRA custodian for more information.
2 Please refer to IRS Publication 590, “Individual Retirement Arrangements”, and consult your tax advisor for additional information.
3 SDIRA Services may charge an additional fee to all accounts that maintain some of these types of investments. See the SDIRA IRA Fee Schedule for more information.