How SDIRA custodians use FMV reports
Self-directed IRA custodians need an annual fair market value for every alternative asset they hold. Here is how independent reports fit into that workflow.
Self-directed IRA custodians are required to report the fair market value of every asset they hold each year. For publicly traded securities this is trivial; for alternatives, it requires an external opinion.
An independent FMV report gives the custodian documented support for the value they report on Form 5498. Without one, custodians often default to cost basis or last-known value, neither of which is appropriate after the first year.
Reports should align to the custodian's reporting format. Some accept a narrative PDF, others request a structured value statement, and some need both. We tailor delivery to fit.
For account holders, a clean annual FMV simplifies recordkeeping, supports Roth conversion planning, and reduces friction at audit or distribution events.