k1
in my ira i have a company that issues ki. i inherited the ira stock. so its new to me. what is a k1 and what does it tell me. thx
in my ira i have a company that issues ki. i inherited the ira stock. so its new to me. what is a k1 and what does it tell me. thx
Permalink Submitted by Alan - IRA critic on Thu, 2020-03-05 14:22
With any luck, the K 1 should not have been issued to your IRA. However, if your IRA holds certain partnerships (often oil and gas business), your K1 will show an amount in Box 20V reporting UBTI (related business taxable income), or UBTI could be reported in a footnote on the K 1. In such a case when Box 20V exceeds $1,000, your IRA will have to file Form 990 T and pay the tax on this UBTI. Many custodians will handle this for you, but the tax and 990 T prepartion fee must be deducted directly from your IRA, not paid by you from other sources.