Partnership Schedule K-1 and IRA
A small portion of my traditional IRA account was invested in five limited partnership accounts in 2021 and is so far this year. I received a 2021 Schedule K-1 for each limited partnership, which identifies the limited partnership on Part 1 of the Schedule K-1 and identifies under Part 11 of my IRA via the custodian, but with my mailing address as the partner. The EIN number for the “partner” is not my SSN. I have not reached my required distribution date, but have taken a monthly withdrawal/distribution of $2,000. I am of the understanding that the income earned on investment inside the IRA is not reported for federal income tax purposes until a non-RMD distribution (my term) or RMD is taken or required. I received a form 1099 for the 2021 non-RMD distributions. Do I have to report the Schedule K-1 information too? If I do, it will duplicate the income that is reported under the form 1099? If I do not, why then is a Schedule K-1 sent to me?
Permalink Submitted by Alan - IRA critic on Wed, 2022-03-30 22:15
What amount is on line 20V of all the IRA K-1 forms? 1,000 is the threshold that would require your IRA (not you) to file Form 990 T and pay the filing fees and taxe directly from the IRA. These payments are not reported distributions and are totally unrelated to your RMDs or other taxable distributions. In many cases, IRA custodians that offer these investments will also file the 990T for you if required.