Next Generation Trust Services Advises Investors with Self-Directed Retirement Plans to Get Fair Market Value of Their IRAs When Asked to Meet Year-End Deadline

Published on September 17, 2014

Administrator of Self-Directed IRAs Informs Account Holders of Change to IRS Form 5498, Which Will Now Track Non-Publicly Traded Alternative Assets; Reflects Increased Interest in Self-Direction and Nontraditional Investments.As the popularity of self-directed retirement plans grow among the investing public, the IRS is taking greater notice of these plans and the nontraditional investments they may include.

As the popularity of self-directed retirement plans grow among the investing public, the IRS is taking greater notice of these plans and the nontraditional investments they may include. Next Generation Trust Services, a third-party administrator of self-directed IRAs, is alerting investors and its clients that the IRS has made changes to Form 5498 which will now have a box meant for self-directed retirement accounts or “hard to value assets.”

One purpose of the form is to declare fair market value of individual retirement arrangements (IRAs) to the IRS as of December 31st each year. The IRS requires all IRA administrators to report the value of each plan they administer to the IRS using Form 5498; custodians/administrators must then provide the report to their clients as well.

“There’s no question—the growth in self-directed retirement plans has caught the attention of the IRS,” said Jaime Raskulinecz, CEO of Next Generation Trust Services. “The changes to Form 5498 have been made in order to track non-publicly traded alternative assets more closely. We have always had to report the fair market value of all our IRAs; however, with this change, it is very likely the IRS will become more diligent in requiring these valuations for nontraditional investments.”

Raskulinecz explained that the asset valuation in self-directed IRAs must be performed by a third party such as an accountant, CPA or appraiser, depending on the assets. With self-direction, individuals may invest in a broad range of nontraditional assets including real estate, commodities, private paper, all types of loans, precious metals and much more. Account holders make all their own investment decisions; Next Generation manages all the paperwork and filing for its clients’ accounts, provides transaction support, and ensures that clients are investing within IRS guidelines.

“We will be asking clients to report the fair market value of their assets to us no later than December 30th so that we can record the appropriate account values by the end of the 2014 calendar year,” said Raskulinecz. “We recommend that anyone who has a self-directed retirement plan consult a tax professional about getting a fair market valuation for their nontraditional assets as soon as possible so their Form 5498 can be filed correctly and on time.” Clients of Next Generation Trust Services will be receiving requests for this information in October.

For more information about self-direction as a retirement strategy or to open a new account, visit or contact Next Generation at or (888) 857-8058.

About Next Generation Trust Services

Next Generation Trust Services (NGTS), headquartered in Roseland, New Jersey, is a professional third-party administrator of self-directed retirement plans. NGTS provides education, administrative support, and account maintenance to individuals interested in self-directing their retirement portfolios with a wide variety of investments that are not typically found in an IRA, such as real estate, precious metals, notes and mortgages, private placements, accounts receivables, limited partnerships, hedge funds, and much more. Next Generation Trust Services serves clients globally via its website, For more information on self-directing a retirement plan, call 973-533-1880, 888-857-8058 (toll free), or e-mail

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