What are the Annual Requirements for Alternative Asset FMVs?

As your custodian, STRATA Trust Company ("STRATA") is required by federal law to obtain and report the fair market value ("FMV") of each retirement account we administer on IRS Form 5498 each year. Alternative asset values are not available through public trading exchanges. Therefore, self-directed IRA owners must generally work with their investment sponsor or issuer (“Sponsor”) to complete this valuation. Unless there are special circumstances, all FMVs must be submitted to STRATA by April 30, in order to meet the IRS Form 5498 deadline of May 31.

No action is typically required from accountholders because STRATA will work directly with your investment sponsor to obtain the annual update. Your action is required if: 

  • You are aware that the Sponsor has recently moved—please have them complete an Investment Issuer Contact Change Request form or provide STRATA with the updated contact information (address, phone, email, etc.), so we can update our records.
  • There are special circumstances—the Sponsor or accountholder must notify STRATA at their earliest convenience at InvestmentUpdates@StrataTrust.com and include the expected date for the FMV. Service fees may apply.

Gradient LineAlternative Assets FMV Annual Request Timeline

Annual updates are due to STRATA by April 30, in order to meet the IRS deadline of May 31.

OPA (8)

If there is an exception or special circumstance that prevents you from meeting the April 30th deadline, the accountholder must notify STRATA at their earliest convenience at InvestmentUpdates@StrataTrust.com and include the expected date for your FMV. Service fees may apply

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Annual FMV Request Timeline Overview

  • 2/1/2024 — Sponsor First Request: STRATA will contact the Sponsor and submit an official request for FMVs that includes instructions on how to provide STRATA with an updated FMV of the investment as of December 31, 2023.
  • 3/1/2024 — Sponsor Reminder: STRATA will send a reminder to the Sponsor if the FMV has not already been provided (and they have not notified STRATA that the FMV will be available after April 30th).
  • 4/1/2024 — Accountholder First Request: If the FMV has not yet been provided and we have not been notified of an extension, STRATA will reach out to the accountholder with specific instructions so they may assist in fulfilling the FMV request. 
  • 4/30/2024 — FMV Deadline: All FMVs must be reported to STRATA in order to meet the deadline for filing IRS Form 5498. FMVs reported after this date may require a corrected IRS Form 5498 to be filed; if so, the $100 Corrected 5498 Fee will apply. 
  • 6/3/2024 — Accountholder FMV Past Due Reminder: If the FMV has not yet been provided, STRATA will send a past-due reminder to the accountholder. The Corrected 5498 Fee may apply. 
  • 7/1/2024 — Late Fee: A Late FMV Fee of $50 will be assessed if the FMV is not received prior to June 30, 2024. STRATA will also attempt to contact you by email or phone to follow up on the late FMV. The Corrected 5498 Fee may apply.
  • 9/2/2024 — Custodial Resignation: If the FMV has not been provided by this date, STRATA must resign as custodian for the account and distribute the asset in-kind to you. If a corrected IRS Form 5498 is filed, the fee will apply; the Late FMV fee and Account Closure Fee will also apply. The distribution of the asset will be considered a taxable event, and penalties and additional taxes may be incurred. Please be sure to provide the FMV to ensure that STRATA will not resign as the IRA custodian. Refer to STRATA's IRA Fee Schedule for a full list of service fees.