reporting FMV of an IRA?

[Skate1968]

I seem to remember once coming across a form in which a client's FMV of IRA was reported to the IRS. I came across this while working for another CPA. Generally speaking, is it necessary to report FMV to the IRS when there are no contributions or distributions being made?

I know FMV of an IRA might need be reported when being converted from traditional to Roth.

But is it necessary to report FMV of IRA when nothing is being taken in or out of the IRA? Or am i missing something? Is there something that i'm forgetting?

thanks for reading

[Bees Knees]

The FMV as of the last day of the year of an IRA is reported each year to the participant on Form 5498. There are several reasons why the participant needs to know this information:

1) Required minimum distribution rules for participants age 70 ½ or older, or for beneficiaries of deceased IRA participants.
2) IRA conversion rules either to a Roth or back to a traditional.
3) Excess contribution rules where part of the earnings need to be withdrawn along with the excess contribution.
4) IRA basis rules when making a nondeductible contribution or taking an IRA distribution that has a basis (Form 8606).

I think that is it. If none of the above apply, there is no tax need to know the FMV.

[Skate1968]

Thanks very much for confirming that, Beesknees.

I'm thinking that the form i remember must have been related to a contribution, conversion or distribution. One of the situations you mention.