Adam Hooper: Are there other, I know like annual statements of value reporting requirements. Is there anything from an ongoing basis that a manager would have to be concerned with?
Mat Sorensen: Yeah. So typically an IRA is going to need to have an annual fair market value. So they want an indication of what's my IRA worth. Now I'll say this just because I see the, the industry and I, you, before I started my own company, I was outside counsel for almost a third of the space.
And so as an attorney the IRS has basically said unique or hard to value assets, like a private investment. That you just have to use their best efforts to update your account value every year. So now what every IRA custodian us included is going to do is tell their customer, Hey, what's your account value?
You have this investment in. ABC limited partnership. What is that worth? And we generally want them to tell us, it's worth X, Y here's what it is. And, but they only know if the fund manager tells them so that, but that could just be a letter that says, here's what the fund, our estimate of what the fund is worth right now.
And that can be used to update the value. It's not like you got to go get a full-blown appraisal or something like that. Testing to what the value is. So you will have some questions from IRA account holders, asking for the valuation on an annual basis. They can get away with not having it for a few years.
But eventually it's something you're gonna need to be able to produce again, even if it's just on a letter.