What types of assets need a fair market valuation?

All assets held in IRA accounts must be valued at fair market value on an annual basis. For traded securities like stocks and bonds held in IRA accounts, these valuations are relatively simple to obtain by the IRA Trustee or IRA Custodian. Many investors, usually through self-directed IRA accounts, hold alternative assets that are not publicly traded. The valuation process for these assets can be more complicated. Alternative assets can include, but are not limited to, private equity, real estate partnerships, other private partnerships, oil and gas interests, mineral interests, and shares of stock of a closely-held or private company.

What type of IRA valuation company should complete the appraisal of my IRA assets?

The Internal Revenue Service (“IRS”) requires that the annual valuations be completed by a qualified, independent, third-party IRA valuation expert or company. Qualified, independent, third-party valuation experts must be at arm’s-length from both you and the investment. Valuations provided by the General Partner or Manager of the alternative investment are not considered independent and do not meet the IRS requirements. J&M Asset Management, Ltd is a qualified, independent, third-party expert with over 80 collective years of experience in providing valuations of privately held alternative assets.

Frequently Asked Questions