72t distributions – K-1 received from client for stock held in IRA
Client has an IRA. Set up 72t a few years ago. Monitoring distributions annually.
Client had a position in the account (EPD is the ticker). Kicked off a K-1. Will this or can this affect the 72t distribution at all?
Permalink Submitted by Alan - IRA critic on Thu, 2022-12-29 15:15
No. The K-1 was likely issued to report UBIT in Box 20V as I recall. If over $1,000 the IRA itself must file Form 990 T and pay the tax, but the tax payment is not reported on a 1099R and therefore will not change the annual IRA distribution. The IRA custodian usually willl file the 990 T.
Permalink Submitted by michael steinebach on Thu, 2022-12-29 16:04
Great, Thank you. You all are the best!