How to invest in startups on Angel List with a Carry Self-Directed IRA
You can use Carry Self-Directed IRAs to invest in startups on Angel List through Angel List’s special purpose vehicles (SPV) and roll up vehicles (RUV).
Follow the steps below.
Step 1: Open and fund your Carry Self-Directed IRAs
Carry’s Self-Directed IRAs are available in the Carry Pro Plan. If you don’t have a Carry account yet, the first step is to create one here. If you’re a Carry Basic Plan user, you can upgrade your plan at any time by going to Settings > Billing > and clicking on the Update Plan button.
You can fund your self-directed IRAs by either making a new contribution or transferring in funds from other retirement accounts, like other IRAs you own. The IRA contribution limit for 2024 is $7,000 if you’re under 50 years of age, and $8,000 if you’ll be at least 50 years of age by December 31, 2024. There are no limits on transfers and rollovers from other retirement accounts. Once the appropriate amount of funds are available for your Angel List investment, move onto Step 2.
Step 2: Steps for Angel List
In Angel List, go to the invites tab, select the investment you want to make, and click Invest. From there, you’ll see a “Who is Investing” section where “New Investment Entity” can be selected.
In the new investment entity, write:
<Client Name>, Legal Owner via Non-Trust Custodial IRA with AET
“Investing through an IRA” will be the bottom option. Clicking this will kick off the entity onboarding process:
Step 3: Documents
Once this is done, you will get access to 3 documents:
1 – Subscription Agreement
Must contain all of the following information:
– Investment Amount
– AET Address: 6900 Westcliff Dr, Ste 603, Las Vegas, NV 89145
– Tax ID 20-8936642
– Required IRA Titling as the Investor: “(Account Holder Name), Legal Owner Via Non-Trust Custodial IRA with AET”
2 – Private Placement Memorandum (PPM)
3 – Signed Operating Agreement/Partnership agreement
IMPORTANT
When filling out the documents, wherever your name goes you should write the appropriate titling:
“<Client Name>, Legal Owner via Non-Trust Custodial IRA with AET”
Wherever there is an address, it should AET’s address.
The documents have to be signed and executed by both parties. You need to reach to out Angel List to make sure the company signs and executes the Subscription agreement, then you can sign it and send us all the documents.
You can find these documents in the Closing documents.
We will also require the wire info, which has to be the business’s.
Step 5: Submit your investment information to Carry
Go to your Carry Self-Directed IRA (Roth or Traditional) that you wish to make the investment from and click on the Invest button.
Then choose Invest in Alternative Assets, enter in your investment information, and upload the documents from Angel List along with the business’s wire information.
Once we receive your investment information, our team will then reach out to you. When we have everything we need, we’ll send the investment for approval through our IRA custodian. Once approved, we’ll be able to move your money to fund the investment.