Annual Reporting – The IRS requires that the custodian track and report all contributions to and distributions from the IRA, as well as the annual value of the IRA’s assets. These filings are done with three simple forms:

  1. Annual Valuation – At the end of each year, you will be asked for the current value of your IRA LLC. Please complete the form and submit it as instructed.
  2. Required Minimum Distributions – Once you reach age 70½, you must take the annual Required Minimum Distribution (RMD) from your IRA. Your first RMD must be taken by April 15th following the year in which you reach age 70½ (Roth IRAs are exempt from RMDs). Your accountant can calculate your RMD for you.
  3. Annual Contributions – Remember to make your annual IRA contributions by April 15th of the following year (e.g. IRA contributions for 2012 must be made by April 15, 2013). Rollover contributions, however, may be made at any time.
    1. Form 5498 – is filed by the custodian. It serves two purposes: 1) it reports the current value of your IRA’s assets, and 2) it reports all contributions to the IRA during the previous calendar year. This filing does not trigger any tax payment.
    2. Form 1099R – when applicable – is filed by the custodian. It reports all distributions from the IRA during the previous calendar year. The reported distributions will be taxable unless the distributions are of after-tax amounts or are tax-free distributions from a Roth IRA.
    3. Form 990T – if there is Unrelated Business Income (UBI) or Unrelated Debt Financed Income (UDFI) in excess of $1,000 during the previous year, the account-holder must have this form completed and submitted to report the UBI or UDFI, and to pay any amount of the Unrelated Business Income Tax (UBIT) that is due. (Your state may require a similar filing.)