Removing worthless assets from an Inherited IRA
I have an inherited IRA from my Father that I set up as a self-directed IRA.
I invested in two closely held LLCs and also entered into a promissory note
agreement with one the two LLCs.
Both of these LLCs are no longer going concerns and for one of these, the Manager cannot
be located.
My IRA Custodian states on their FMV form that if an asset is to be valued at 0, it requires a letter from the Corporation, CPA or attorney stating the asset is worthless.
Do I have any recourse if one cannot locate one of the 3 aforementioned parties to value the asset to 0?
Thanks for any help you might be able to provide.
Steve Sell
Westcliffe, CO
Permalink Submitted by Jose Morales on Mon, 2015-11-30 18:37
You need to contact the IRA Custodian and determine what other method can be used to provide them proof of the assets current value, since it is ultimately them that report a value on any 1099-R or 5498 that will be issued.
Permalink Submitted by Alan - IRA critic on Mon, 2015-11-30 18:46
I hope you also have the liquidity to meet your annual inherited IRA RMD. While the year end value will determine the following year’s RMD amount, you will need to distribute that RMD by the end of each year.