RMD Values for private equity holdings
A client purchased common stock in a privately held company within his IRA. It was acquired over 15 years ago for $80,000.00 and has not been valued since. The value on the IRA brokerage statements is $0.00 since no readily assertainable value can be established for the entity. What value do I use for this equity holding when calculating RMDs or if the client decides to remove (distribute) the private equity holding from the IRA to himself in full?
Permalink Submitted by Denise Appleby on Fri, 2008-12-05 05:31
He should work with the issuer( or transfer agent – I think) to get a valuation. This should really be done at least once per year, so that the FMV reporting for the IRA is correct, whether or not the IRA owner is RMD eligible. Most custodians do not permit such transactions, unless the purchase agreement includes a clause about the valuation process, and who is responsible for providing the valuation.