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RevUp + AltoIRA = Tax Advantages on Investment Profit

RevUp's model is unique in how we offer investors a quicker turn on capital and a faster path to liquidity than other platforms. After six funds—and a history of returning profits back to our investors—we often field questions on how to best manage the tax liabilities of those profits.

To address this, RevUp began supporting investments through self-directed IRAs in 2022. Self-directed IRAs offer investors a tax-advantaged vehicle through which they can make investments into RevUp funds.

This year, RevUp has partnered with AltoIRA, a leading self-directed IRA platform, to streamline our self-directed IRA investments. RevUp Fund 2023 is a featured offering on the Alto platform, making it easy for Alro users to seamlessly invest into our funds and utilize the tax benefits that Alto offers.

What's the benefit of a self-directed IRA? For funds like RevUp, investor returns begin 12 months after a fund closes and continues until the fund reaches full maturity. Profits—dividends received the return of invested capital—are treated as ordinary income by the IRS. When those returns are distributed to an IRA, they are tax deferred until withdrawn, and then subject to the tax disbursement rules of the type of IRA and the tax situation of the individual investor.

For RevUp investors, self-directed IRAs have a particular advantage because of the layering effect of RevUp’s annual fund model, and the dividend streams that are generated from investment in years 2-7. After subscription to a series of RevUp annual funds, an investor may generate enough returns to fund their next subscription, essentially “recycling” their investment without putting in additional new capital. This effect can be accelerated by the tax-advantaged nature of the IRA.


Considering a self-directed IRA for your RevUp investment? Please contact your tax advisor to explore whether this approach is right for you. However, RevUp Funds can accept investments via the IRA platform of your choice.

Want to explore a RevUp investment further? Learn more here.

RevUp Capital and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. 

Want to learn more about RevUp's model? Check out this quick video:

More About RevUp Capital 

RevUp Capital invests in B2B and B2C companies that are revenue-driven and ready to double down on growth. We deploy cash and capacity to help companies grow from $1-3M to $10-30M, quickly and efficiently, using a revenue-based model. Companies enter our portfolio with $500K-$3M in revenue, a strong growth rate, and a team that’s ready to scale. Our typical investment range is $300K-$500K.

We invest into a company's market-facing activity using a cash and capacity model. We pair our cash investment with dedicated support from the RevUp Growth Platform: a powerful resource to build a data-driven growth engine, delivered by people who get the work done. Rather than take equity, companies return investment through a small percentage of revenue over time. More at

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