IRA Holding interest in REIT
If the owner of an IRA that holds an interest in a non-publicly traded REIT, among other investments, has to begin taking RMDs, how is the fair market value on December 31 of the prior year determined? Is the REIT required to provide that information? Thank you
Permalink Submitted by Alan - IRA critic on Tue, 2025-09-23 17:07
Generally, the IRA custodian is responsible for determining the year end value, although they are allowed to request assistance from the REIT manager. The IRA custodian evidently will hold this type of investment and they should not do so unless they have an effective plan to determine the year end value as required by the IRS. Since the IRS requires that value to be reported on a 5498 each year, the custodian should have leverage requiring the cooperation of the REIT manager.
The valuation is needed even if the IRA owner has other IRAs from which to take the RMD because the value of all such IRAs is needed to determine the total RMD.