INSIGHTS
Roth IRA Conversion Appraisal Guides & Insights
Guidance on Fair Market Value appraisals for Roth IRA conversions: how we value LLC interests, private company and partnership stakes, real estate holding entities, and other illiquid retirement assets for custodian submission and IRS reporting.
LATEST ARTICLES
Articles on IRA conversion valuations
Valuing Private Notes in a Self-Directed IRA Roth Conversion: Second Mortgages and Life Settlements Explained
Valuing private notes in a self-directed IRA Roth conversion means estimating fair market value on the conversion date, not reporting face value. This guide walks through how private notes, second mortgages, and life settlements are valued, and which documents support the number.
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Top Self-Directed IRA Custodians: How to Choose and What Each One Offers
Comparing self-directed IRA custodians means weighing asset-type support, fee transparency, and account minimums, not just marketing claims. This guide breaks down five widely used custodians platform by platform and explains why an independent appraisal still matters for the hard-to-value assets they hold.
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How a Roth Conversion of Self-Directed IRA Assets Can Trigger Higher Medicare IRMAA Premiums
A Roth conversion of a self-directed IRA asset is taxed on its appraised fair market value, and that income can push your Medicare IRMAA surcharge into a higher bracket two years later. This guide shows how to get the appraisal right before you convert, not after, so you can model the premium impact in advance.
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Should You Convert a Self-Directed IRA to a Roth Before or After Retirement?
Converting a self-directed IRA's hard-to-value assets to a Roth isn't a single decision but a multi-year sequencing question, and the appraisal date drives the entire tax bill. This guide walks through the pre-retirement versus trough-years tradeoff and why the valuation has to come before the decision, not after.
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The IRS Penalty for Converting an SDIRA Asset Without a Qualified Appraisal
Converting an SDIRA asset to a Roth IRA without a qualified appraisal can trigger IRS accuracy-related penalties of 20% to 40% on the resulting underpayment, along with custodian delays and prohibited-transaction exposure. Here is how the IRC 6662 penalty structure works and why a qualified independent appraisal is your best defense.
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How Is a Roth Conversion Taxed When You Convert an Illiquid Asset?
Converting a rental property, private stock, or crypto position out of a traditional IRA triggers ordinary income tax on the appraised fair market value, with no market price to check the number against. This guide walks through the Form 8606 math, the 2025 bracket stacking, IRMAA exposure, and a full worked example.
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Madison Trust IRA Asset Valuation: A Step-by-Step Guide to the Annual Form
Madison Trust IRA asset valuation is the annual fair market value reporting your self-directed IRA custodian needs for IRS Form 5498. This guide walks through the form section by section and explains when a licensed professional must certify the value.
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Form 5498 Fair Market Value Rules for Self-Directed IRA Roth Conversions
IRS Form 5498 requires custodians to report the fair market value of hard-to-value self-directed IRA assets every year, and that same value sets the taxable amount when you convert to a Roth. Here is what boxes 15a and 15b require, why the conversion date valuation matters most, and what a qualified appraisal needs to show.
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What Does an Appraisal Cost for a Self-Directed IRA Roth Conversion?
A self-directed IRA Roth conversion appraisal is quoted as a fixed fee starting at $5,500 for an IRS-qualified report, with typical engagements running $7,500 to $12,000 depending on asset complexity. This guide breaks down what drives the cost of an appraisal for a self-directed IRA Roth conversion and how to keep the scope predictable.
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How Lack of Marketability and Minority Interest Discounts Affect SDIRA Roth Conversions
A Roth conversion of self-directed IRA assets is taxed on fair market value, and a properly supported discount for lack of marketability or minority interest can lower that value and your tax bill. This guide explains how the discounts work, what a defensible appraisal must include, and who actually performs this valuation work.
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How to Value Alternative Assets in a SDIRA for Form 5498 Reporting
Every alternative asset in a SDIRA, from rental property to private equity, needs an annual fair market value for IRS Form 5498. This guide explains who is responsible for that valuation, which asset types trigger extra reporting, and what happens when the number is missing or wrong.
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The Roth IRA Conversion 5-Year Rule: How the Two Clocks and the Age 59 1/2 Exception Work Together
The Roth IRA conversion 5-year rule and the Roth earnings 5-year rule are two different clocks with two different jobs, and confusing them can trigger a surprise 10% penalty. This guide breaks down both rules, the IRS distribution ordering rules, and exactly how the age 59 1/2 exception changes the math.
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What Is a Discounted Roth IRA Conversion and How Do Valuation Discounts Work?
A discounted Roth IRA conversion uses an independent appraisal to establish a defensible, discounted fair market value for illiquid self-directed IRA assets, so conversion tax is paid on that lower number instead of the nominal invested amount. This guide explains which assets qualify, how the discount is calculated, and what documentation the IRS expects to see.
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Private Stock Appraisal for IRA Conversions: What You Need to Know
A 409A valuation tells a pre-IPO company what price to put on employee stock options -- it is not an IRS-qualified appraisal for a Roth conversion. This guide explains exactly what that difference means for owners of privately held shares inside a self-directed IRA, and how to get the appraisal right before you convert.
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What is a Self-Directed IRA? Your Complete Guide to SDIRAs and Alternative Assets
A self-directed IRA lets you invest retirement savings in alternative assets, from real estate to private equity, that a standard brokerage IRA cannot hold. This guide explains how SDIRAs work, which assets are allowed (and which are not), and why annual fair market valuations are required.
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Pre-IPO Company Valuation Discounts in 2026: What SDIRA Holders Need to Know Ahead of SpaceX, OpenAI, and Anthropic Valuations
A pre-IPO company appraisal for Roth IRA conversion is a high-stakes tax event: the IRS taxes your SpaceX, OpenAI, or Anthropic position at fair market value on the conversion date. This guide covers the valuation approaches, discount methodology, penalty risks, and appraiser qualifications you need to convert defensibly in 2026.
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Converting an illiquid asset to a Roth? Get a defensible value.
We prepare USPAP-compliant Fair Market Value reports structured for custodian and tax-advisor review. Most engagements complete within three to five weeks, with expedited delivery as fast as 11 business days for custodian or filing deadlines.