I understand that one of the two IRS-allowed exceptions to a below-market-interest-rate loan to a family member is the $100,000 exception. For example, if a father were to lend a daughter $20,000 at below-market rates AND the daughter had net investment income of $1,000 or less, then the father would only have to report on his tax return the actual loan interest received from the daughter that tax year. If the daughter made over $1,000 in net investment income (interest, dividends, short-term capital gains) in a tax year, then the father would be required to report interest income in an amount equal to the subject net investment income of the daughter. MY QUESTION: Would any dividends or interest earned in the daughter’s (borrower’s) ROTH IRA be considered “investment income” in this area of the tax law? Thank you in advance for your answer.