reporting accuracy on inkind rollover

[Draper55]

I have a client who rolls her 401(k) account into to her IRA in 2014. She has multiple positions(about 30 stocks and 15 bonds) that are transferred in kind. On the final statement no values are shown on the day the positions are journaled; only number of shares and bond face amounts. Given that there is no tax effect associated with the precision of the valuation, is it bad practice to just use the previous statement value of the portfolio or is it good practice in that I can't justify billing the client for the date of journaling calculation given that it is has no tax effect on her.

[Lou S.]

Can you ask the fund house for the value on the date journaled?

[ESOP Guy]

It isn't clear to me why you can't talk to the client and give them this option:

1) The client can go through the positions and look up the closing costs and put them in this spreadsheet with the positions listed. You will use that for the values. In short make the client do the work.

2) The client can agree to pay you for the work outlined above.

If the client refuses to do both and wants you to use a value from an older time period get that instruction in writing from them and do what the plan administrator tells you to do. You need to explain that you don't think at is the correct way to do .

I have done what I have outlined above in these types of situations (but not the exact same set of facts) many times.

You are not obligated to give your services away for free. And while I get that at times it is cheaper to give a client what they want then replace them if they leave I see no reason why you assume you have to be a "door mat".

For what it is worth I agree the tax implications are small to none but it still should be the plan administrator authorizing using an old value if that is the decision.

edit was to fix minor typos

[rcline46]

You are looking at the 'out' statement. Why not use the 'in' statement from her IRA?

[Draper55]

thanks guys for your responses; I was able to obtain from the brokerage firm a 'in' IRA transaction listing showing dollarized amounts.I was able to total these amounts in Excel and report the correct rollover amount on the 1099R. .thanks again for your help...