At Rocket Dollar, customers self report their FMV in our investment tracker. All assets held in IRAs must be valued every year with IRS Form 5498
Why have I never heard of this?
Form 5498 is reported for every IRA retirement account in the United States. When it comes to stocks and bonds, the price tracking structure of those assets has decades of infrastructure so that your investment providers can file it automatically. If you look closely at your mail and digital inboxes during tax time, you might see your stocks and bonds providers sending you a copy of Form 5498
When it comes to private assets, Rocket Dollar needs a little help from you to make sure it is reported accurately. Rocket Dollar wants to continue to make it easier to value private assets.
How do I report my Fair Market Value at Rocket Dollar?
- Log into your Rocket Dollar Dashboard
- Open the investments tab
- Enter or update the value of all your investments
- Update your cash value from the value of your account at our partner bank
- Rocket Dollar and our custody partners work together to confirm your IRA's fair market value, and then our custody partner sends IRS Form 5498 to the IRS.
What if the investment tracker is not taking my investment?
Make sure to use whole numbers. Currently, our investment tracker does not take decimal points.
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A message from our partner bank, Solera
The IRS requires Form 5498 to be filed annually for every Individual Retirement Account (IRA) Plan. Form 5498 provides information to the IRS about contributions made to the IRA along with the Fair Market Value (FMV) of the IRA Plan. In order to report accurate information to the IRS, you, as the manager of your self-directed IRA, must provide Solera National Bank with an accurate valuation of the LLC or Trust that your IRA Plan owns as of December 31st each year. You do not need to wait until December 31st; you may submit the expected value at your earliest convenience. Solera National Bank will then submit Form 5498 to the IRS and provide you with a copy for your records.
The information must be submitted to the Rocket Dollar Investment Tracker on the dashboard by December 31st.
We recommend you seek legal and tax advice before submitting your FMV to ensure you are complying will all applicable laws and regulations. Solera National Bank will not provide any such advice. We have prepared a list of frequently asked questions that we suggest you review prior to submitting your FMV.
What if I'm using IRAR Trust as a custodian?
We will work together with IRAR to make sure your Form 5498 is filed, but need you to complete your investment tracker as of investment values from December 31st, 2019 in order to do so.
You will be assessed a late fee of $50 and your IRA may be closed and distributed for noncompliance.
Please refer to Internal Revenue Code, Department of Treasury Regulations § 25.2512-1 through § 25.2512-6. Please refer to: Internal Revenue Code, Department of Treasury Regulations § 25.2512-1 through § 25.2512-6.
Any questions about valuations should be directed to your CPA, tax attorney, or financial advisor.