Reporting for hard-to-value IRA investments is optional for 2014, IRS says

New information reporting requirements are proposed to apply to certain IRA investments with no readily available fair market value, according to the latest edition of IRS Employee Plans News. Investments that would need to be reported include nonpublicly traded stock, partnership or limited liability company interests, real estate, options, and other hard-to-value investments.

These requirements would affect issuers of Form 5498, IRA Contribution Information, and Forms 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. In order to give financial institutions reasonable time to fully implement these 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 Form 1099-R and 5498, which will likely be issued near the end of 2013, the IRS said.

Source: IRS Employee Plans News, Issue 2013-7, November 13, 2013.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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