Limited Partnership stock in a Roth?
Can I hold shares of a Limited Partnership that trades on the NYSE in my Roth? The company in question is ONEOK Inc., ticker OKS.
Thank you.
Can I hold shares of a Limited Partnership that trades on the NYSE in my Roth? The company in question is ONEOK Inc., ticker OKS.
Thank you.
Permalink Submitted by Alan Spross on Thu, 2007-09-20 00:53
You can, however there is one potential downside which is the UBIT (Unrelated Business Income Tax). If your holding of MLPs or certain other investments results in over $1,000 of such income, your IRA must file a tax return and pay the UBIT. Your IRA custodian may handle this for you, but the tax still depletes your IRA balance.
Permalink Submitted by Robert Nauta on Thu, 2007-09-20 01:12
Thank you for your reply. So, if the income generated is [i]less[/i] than $1000, there is no tax due, thus no return needs to be filed?
Permalink Submitted by Alan Spross on Thu, 2007-09-20 02:07
Right. Perhaps with some research you can find out how many shares would likely keep the amount under 1,000, if the UBIT has been a problem for this holding.
Permalink Submitted by Robert Nauta on Thu, 2007-09-20 02:13
OK, good deal. Thank you again!