IRS-qualified Fair Market Value (FMV) business appraisals and valuations for Traditional/401K to Roth IRA Conversions. Horizon IRA Conversion Appraisers value pre-IPO companies, LLCs, private equity investments, operating companies, real estate holding companies and more for HNWIs.
If your retirement account holds assets without a readily available market price, your custodian will typically require an independent Fair Market Value before a Roth conversion. If the asset does not have a publicly traded price, your custodian will typically require independent valuation documentation. Horizon appraises all types of business interests, including:
Fair Market Value appraisals for single-member and multi-member LLCs held inside IRAs or Solo 401(k)s. Entity-level valuations when required by custodians prior to conversion.
Valuation of minority or controlling interests in privately held businesses, limited partnerships pre-IPO privately-held shares, and investment entities lacking a readily available market value.
LLCs or partnerships that hold residential, commercial, or mixed-use property. We value the ownership interest — not just the underlying asset.
Notes, structured investments, private equity, fund interests, and other non-public assets requiring third-party FMV for Roth conversion reporting.
When you convert privately held shares held inside a self-directed retirement account, the IRS taxes the conversion on the fair market value of those shares as of the conversion date. Because interests in pre-IPO companies, closely held businesses, and venture-backed startups have no public trading price, that value must be established by a qualified, independent appraiser rather than estimated by the account holder.
IRS Publication 561 sets out how fair market value should be determined and documented for property that lacks an observable market price. A defensible report applies recognized valuation methodology, documents the ownership rights and transfer restrictions attached to the interest, and supports the concluded value with market evidence. This is the standard our appraisers work to on every conversion engagement, so the value you report to your custodian and the IRS is reasonable and supportable.
The reporting obligation for alternative assets does not end at conversion. Custodians must report the fair market value of every asset in a self-directed account each year on IRS Form 5498, which means privately held shares, pre-IPO equity, fund interests, and other illiquid holdings need a supportable valuation on an ongoing basis, not only at the moment of a Roth conversion.
When an asset has no readily available market price, custodians and tax advisors generally require an independent valuation to satisfy this annual reporting requirement. Our appraisers prepare fair market value reports for these holdings that are structured for custodian submission and built to withstand scrutiny, whether the value is needed for a conversion, an in-kind distribution, or routine year-end reporting.
Calculate The Cost & Benefits of Making an IRA Conversion with our Roth IRA Conversion Calculator
Insights
Roth conversion rules, valuation discounts, self-directed IRAs, and private stock appraisals.
The Roth IRA conversion 5-year rule and the Roth earnings 5-year rule are two different clocks with two different jobs, and confusing them can trigger a surprise 10% penalty. This guide breaks down both rules, the IRS distribution ordering rules, and exactly how the age 59 1/2 exception changes the math.
Read more →
A discounted Roth IRA conversion uses an independent appraisal to establish a defensible, discounted fair market value for illiquid self-directed IRA assets, so conversion tax is paid on that lower number instead of the nominal invested amount. This guide explains which assets qualify, how the discount is calculated, and what documentation the IRS expects to see.
Read more →
A 409A valuation tells a pre-IPO company what price to put on employee stock options -- it is not an IRS-qualified appraisal for a Roth conversion. This guide explains exactly what that difference means for owners of privately held shares inside a self-directed IRA, and how to get the appraisal right before you convert.
Read more →
A self-directed IRA lets you invest retirement savings in alternative assets, from real estate to private equity, that a standard brokerage IRA cannot hold. This guide explains how SDIRAs work, which assets are allowed (and which are not), and why annual fair market valuations are required.
Read more →
A pre-IPO company appraisal for Roth IRA conversion is a high-stakes tax event: the IRS taxes your SpaceX, OpenAI, or Anthropic position at fair market value on the conversion date. This guide covers the valuation approaches, discount methodology, penalty risks, and appraiser qualifications you need to convert defensibly in 2026.
Read more →Client feedback
Responsive, professional, first class deliverables -- especially considering that that the appraised assets are extremely complex financial assets with little by way of comps. The deliverable satisfied my accountants and advisers as being more than adequate to support the valuation needed to complete a conversion to a Roth IRA.
Our valuation process is structured to deliver a clear, independent Fair Market Value determination suitable for custodian submission and tax reporting. From when we are engaged for the valuation work, most engagements complete within three to five weeks, with expedited delivery, as fast as 11 business days, available for custodian or filing deadlines.
We review the ownership structure, asset type, and intended conversion timing to clearly define the scope of work and issue your appraisal quote.
Once you decide if you'd like to move forward, we gather relevant financial statements, governing documents, capitalization tables, operating agreements, and other supporting materials necessary for a comprehensive analysis.
A credentialed valuation professional conducts a detailed analysis using appropriate valuation methodologies. Where applicable, ownership characteristics such as lack of control or lack of marketability are evaluated in accordance with accepted valuation standards.
You receive a structured, well-supported report prepared for Roth conversion reporting purposes and suitable for custodian and advisor review. We will also sign any additional documents you might need for your conversion.
Have questions?
An IRA conversion appraisal is an independent Fair Market Value determination of assets held inside a retirement account at the time of conversion. When assets do not have a publicly traded market price — such as LLC interests, private companies, partnership interests, or other alternative investments — a qualified third-party valuation is typically required to support the value reported for tax purposes. The appraised Fair Market Value determines the amount of income recognized on the conversion.
An appraisal is generally required when the assets being converted do not trade on an established public market.
Common examples include:
Publicly traded stocks and mutual funds typically do not require an appraisal because market pricing is readily observable.
On a single asset, you can expect the fees to be anywhere from $6500 to $8K for an IRA conversion appraisal. Horizon's valuations typically start at $5K for the most basic engagements and can exceed $20K+ for more complex assets. When multiple assets are involved, fees exceed this range, but discounted pricing is offered for all of the investments.
Fair market value for privately held shares is determined using one or more of the three recognized valuation approaches: the income approach, the market approach, and the asset approach. Our appraisers select and weight the approaches that best fit the company's stage, financial profile, and available data, then document the analysis so the conclusion is defensible under IRS standards. Where ownership characteristics warrant, adjustments such as discounts for lack of control and lack of marketability are applied and supported with market evidence.
Yes, but we cannot guarantee this. All of our appraisals are conducted in compliance with USPAP and IRS standards by a qualified professional. Our reports are extremely robust and include detail on how the final FMV was determined.
Typically 3 weeks. Shorter, simpler engagements can take 2 weeks, while more complex assignments can take up to 4 weeks.
Get Started
Fill out the form below and we'll get back to you within one business day.