can't determine FMV for RMD

[Scuba 401]

is there any relief for illiquid assets with a difficult to determine FMV?

[ETA Consulting LLC]

No. Typically, you'd know the consequences of illiquid assets in retirement plans going in; which should be considered before making the investment. <-This isn't intended as sarcasm, but merely to point that a need for liquidity should always be an attribute in the investment decisions (which can apply to assets with surrender charges just as well).

Good Luck!

[jpod]

Scuba: I am not able to decipher your question. Are you saying that the plan/account is illiquid or are you merely saying that some assets are difficult to value but there are other liquid assets? If the latter, you just take your best shot and for MRD purposes you err on the side of valuing it too high.

[Scuba 401]

Scuba: I am not able to decipher your question. Are you saying that the plan/account is illiquid or are you merely saying that some assets are difficult to value but there are other liquid assets? If the latter, you just take your best shot and for MRD purposes you err on the side of valuing it too high.

in this case both. what do you do when a substantial asset in an IRA is currently illiquid and difficult to value? i suppose you could give it a zero or close to zero value but what if you are wrong?

[jpod]

Not sure what you mean when you say "both." If the only assets are illiquid, what difference does it make what they are worth?

[mbozek]

Scuba: I am not able to decipher your question. Are you saying that the plan/account is illiquid or are you merely saying that some assets are difficult to value but there are other liquid assets? If the latter, you just take your best shot and for MRD purposes you err on the side of valuing it too high.

in this case both. What do you do when a substantial asset in an IRA is currently illiquid and difficult to value? i suppose you could give it a zero or close to zero value but what if you are wrong?

Under IRS regs it is the responsibility of the IRA owner to have assets not publicly traded periodically appraised by a qualified appraiser to determine the FMV. If the IRA owner does not comply with this requirement then the IRA will be subject to various penalities under the IRC. If the client does not want to retain competent tax counsel to advise them of the rules that govern IRAs with these kinds of assets then the client should not retain such illiquid assets in the IRA.

Scuba: what is your relationship to the IRA owner? I think you are in over your head.

[Scuba 401]

Scuba: I am not able to decipher your question. Are you saying that the plan/account is illiquid or are you merely saying that some assets are difficult to value but there are other liquid assets? If the latter, you just take your best shot and for MRD purposes you err on the side of valuing it too high.

in this case both. What do you do when a substantial asset in an IRA is currently illiquid and difficult to value? i suppose you could give it a zero or close to zero value but what if you are wrong?

Under IRS regs it is the responsibility of the IRA owner to have assets not publicly traded periodically appraised by a qualified appraiser to determine the FMV. If the IRA owner does not comply with this requirement then the IRA will be subject to various penalities under the IRC. If the client does not want to retain competent tax counsel to advise them of the rules that govern IRAs with these kinds of assets then the client should not retain such illiquid assets in the IRA.

Scuba: what is your relationship to the IRA owner? I think you are in over your head.

that is awfully presumptuous of you mbozek. you think I am over my head because i asked a question on this board? you don't know a thing about me or my credentials. plenty of times i am 99% sure of what the answer might be but i ask it anyway just in case someone might have different information. but in any event i appreciate the answer.