Fair Market Value

Submitted by John Reynolds on Thu, 2019-09-05 16:35

I rolled my 401k to an IRA in 2019.
The Navy Federal Credit Union is asking
for the fair market value of the rollover
to determine my RMD.
How is that calculated ?



Submitted by Alan - IRA critic on Thu, 2019-09-05 17:12

  • The 401k plan is responsible for distributing your 2019 plan RMD before they distribute the direct rollover to NFCU. If the 401k plan fails to distribute the RMD separately, the RMD amount that should have been distributed and not included in the rollover is still deemed to have been distributed, so the 401k RMD has been satisfied. However, now you would have an excess IRA contribution that needs to be returned to you by NFCU because an RMD is not eligible for rollover. 
  • In the above context, I do not understand why NFCU would be asking this question. They issued an IRA share certificate for you with the rollover funds, correct?  The FMV of this IRA on 12/31/2019 will be used to determine your 2020 IRA RMD and the CU obviously will know that figure. 
  • Can you clarify why they are asking this question?  When did you retire from the 401k employer and what was your age at the end of that year?


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