Frequently Asked Questions
Regulators have placed an increasing emphasis on ensuring that alternative assets are being valued appropriately. This can be complex for individual investors and fiduciaries. Read below for answers to commonly asked questions.
Why do I need an IRA valuation?
The Internal Revenue Service requires that a fair market value be determined for all IRA assets on an annual basis, including those assets that are not publicly traded. Read More
What type of assets need a fair market valuation?
All assets held in IRA accounts must be valued at fair market value on an annual basis. Read More
What type of IRA valuation expert or company should complete the valuation of my IRA assets?
The Internal Revenue Service (“IRS”) requires that the annual valuations be completed by a qualified, independent, third-party IRA valuation expert. Read More
What are the risks of not getting a proper IRA valuation of the assets in my account?
An improper valuation or a valuation that is not well documented carries the risk of an assessment of additional income tax as well as related interest and penalties. Read More
What type of IRA valuation is needed for my assets?
The most widely recognized and accepted standard of value is fair market value. Fair market value is the standard that applies to all federal and state tax matters. It is also the legal standard of value in many other valuation situations. Read More
How often do I need an IRA valuation of the assets in my account?
All of the IRA assets need to be valued annually even if the value of the asset has not changed in the past year. A complete valuation report with supporting documentation is required annually for all alternative assets held in IRA accounts.
How do I get a third-party IRA valuation expert for my IRA assets?
A qualified, independent, third-party expert like J&M Asset Management should be hired to complete the valuation of the alternative assets in your IRA account. Give us a call, 630.790.4205, send us an email, [email protected], or fill out the form on our contact page and we can answer your questions and give you a quote. Read More
How long does the IRA valuation process take?
In most cases we can complete a valuation report in approximately two to four weeks from the date that we have all of the necessary documentation. Special circumstances in many cases can be accommodated. Give us a call, 630.790.4205, we would be happy to discuss your timeframe with you. On completion, copies of our valuation reports including financial statements and supporting exhibits are provided to the IRA account holder as well as the IRA Trustee or Custodian.
What are the key dates I should remember for the annual IRA valuation of my IRA assets?
The IRS Form 5498 has a due date of May 31st and other valuations reports are due between January and March. Read More
What are the valuation concerns when converting a traditional IRA that holds alternative assets to a Roth IRA?
The Internal Revenue Service (“IRS”) requires that the assets held in a traditional IRA be valued at the time of the IRA’s conversion into a Roth IRA. The amount of the conversion is generally considered taxable income in the year of the conversion. For alternative assets, a fair market value must be determined by a qualified, independent, third-party valuation expert. There are both risks and opportunities in determining the fair market value of alternative assets held by an IRA. Read More