A 401(K) account proposes investing $50,000 in an Exchange Traded Note that in turn tracks an MLP index and the underlying MLPs may generate UBTI. It is unknown whether the publicly traded entity would report to the third party administrator of the 401(k) on a 1099 or a form K-1. Since the exchange traded note is a derivative If the investment, it is not known whether it will generate UBTI. If there is more than $1,000 UBTI reported to the TPA of the 401(k), must the administrator file a 990-T? If he does, doesn’t the tax so paid just reduce the participant’s net yield on the investment with no other affects?