The IRS requires custodians to report the fair market value (FMV) or good faith estimate (GFE) of all retirement account assets each year on Form 5498 and prior to certain taxable events. Because mineral rights are not publicly traded, their values are not automatically available and must be provided by the accountholder.
Accurate valuation reporting helps:
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Preserve the tax-advantaged status of the retirement account
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Support correct IRS reporting
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Ensure compliance with retirement account rules
Valuation updates are required:
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Annually, as of December 31
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Before a taxable event, such as:
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A distribution
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A Roth conversion
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Annual valuation updates must be submitted to STRATA by April 30 to meet the IRS reporting deadline of May 31.
Article quick links: Valuation source | Additional submission info | Get started | Timeline details
Who is considered a qualified valuation source?
Valuation updates must be provided by a qualified, independent party, such as:
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A licensed appraiser
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A CPA or qualified financial professional
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An investment sponsor, managing member, or general partner with authority
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An independent third-party familiar with the asset type (for example, a petroleum engineer)
The valuation provider must not be a disqualified person under Internal Revenue Code §4975.
If you incur any fees from obtaining a valuation, they must be paid from your STRATA IRA. Submit STRATA's Expense Payment Authorization form.
Acceptable valuation agent supporting documentation must:
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Clearly identify the mineral rights asset
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Include the valuation date
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State the estimated value
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Be signed and dated by the valuation provider
Each mineral rights asset must be supported by its own documentation.
⚠️FMV Changes of 50% or More
If the updated FMV reflects a significant change (50% or more) from the previously reported value, STRATA may request additional clarification or documentation to support the valuation.
Article quick links: Valuation source | Additional submission info | Get started | Timeline details
Additional submission requirements
- If the valuation is received after the deadline, the updated value will reflect the form submission date, and any corrected tax forms may incur a correction fee. Please refer to STRATA’s IRA Fee Schedule.
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Up to eight mineral rights assets may be reported on STRATA's Fair Market Value - Mineral Rights form
- If you incur any fees from obtaining a valuation, they must be paid from your STRATA IRA. Submit STRATA's Expense Payment Authorization form.
Article quick links: Valuation source | Additional submission info | Get started | Timeline details
Ready to get started?
STRATA’s Fair Market Value – Mineral Rights form includes fast, electronic submission through ServiceNOW. Accountholders can easily complete and sign the form, upload supporting documentation, and securely transmit their FMV update directly to STRATA. Click the form link above to get started. Select "Complete Online", then enter your email when prompted and follow the on-screen instructions.
Article quick links: Valuation source | Additional submission info | Get started | Timeline details
Mineral Rights FMV Annual Request Timeline
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.
Timeline details:
2/16 — First Request: STRATA will notify accountholders to provide us with an updated valuation as of December 31 (or within 12 months of the last FMV submitted).
3/16 — Reminder: STRATA will mail a reminder to accountholders if the valuation has not already been provided (and we have not received prior notice that the valuation will not be available until after April 30th).
4/1 — Final Reminder: If the valuation has not yet been provided, STRATA will mail a final reminder to accountholders that annual valuation update is due by April 30. This letter will also include potential actions/fees that may occur if the valuation is not provided to STRATA.
4/30 — FMV Deadline: All valuations must be reported to STRATA in order to meet the IRS deadline for filing Form 5498. FMVs reported after this date may require a corrected Form 5498 to be filed; if so, the $100 Corrected 5498 Fee will apply.
7/1 — Late Fee: A Late FMV Fee of $50 will be assessed if the valuation is not received prior to June 30. STRATA will also attempt to contact accountholders by email or phone to follow up on the late annual valuation. The Corrected 5498 Fee may apply.
9/1 — Custodial Resignation: If an annual valuation has not been provided by this date, STRATA must resign as custodian for the account and distribute the asset in-kind to you. The Late FMV fee and Account Closure Fee will apply. If a corrected 5498 is filed, the fee will apply as well. The distribution of the asset will be considered a taxable event, and penalties and additional taxes may be incurred.
Refer to STRATA's Fee Schedule for a full list of Service Fees.