Determining Market Value for Conversion
If an IRA holds several limited partnerships that do not report a market value what is the procedures to follow to calculate a “fair market value” to include at the conversion?
Thanks,
If an IRA holds several limited partnerships that do not report a market value what is the procedures to follow to calculate a “fair market value” to include at the conversion?
Thanks,
Permalink Submitted by Alan Spross on Mon, 2009-09-28 22:04
It is up to the IRA custodian to provide a year end value for all assets in the IRA. In some cases, this will require that the IRA itself pay for an appraisal to determine that value. If the owner wants to convert, it should be discussed with the IRA custodian. If the conversion can be done very close to the year end valuation date, eg in January then perhaps the year end value can be used for the 1099R reporting the conversion. That would save having to do a second appraisal or evaluation for conversion purposes.