Reporting for Hard-to-Value IRA Investments is Optional for 2014


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.