New information reporting requirements are proposed to apply to certain IRA investments with no readily available fair market value. Reportable investments may include:
- non-publicly traded stock,
- partnership or LLC interests,
- real estate, options, and
- other hard-to-value investments.
This will affect issuers of:
- Form 5498 PDF, IRA Contribution Information, and
- Form 1099-R PDF, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
To give financial institutions reasonable time to fully implement the new requirements, the additional reporting for hard-to-value IRA investments will be optional for 2014.
The new reporting requirements will be described in the 2014 Instructions for Forms 1099-R and 5498, which are expected to be issued around the end of the year.