I have recently bought $5000 of an MLP that is currently yielding 8.4%($420) in my IRA.

This seems to be below the $1000 threshold for UBTI tax.

The company has mentioned that they plan on increasing the dividend 400% for 2009.

What I like about this company is that they have been growing their dividend > 10% annually.

If the dividend increase happens, I will definitely cross the UBTI tax threshold.

My question is:
Would the expense occurred in UBTI tax and the custodian fee increase from having a MLP in the Roth make this Investment cost more than it earns?

I’ve never done my own taxes because my uncle is a CPA and has done them for me so I’m kinda clueless about this.

thanks for any help you can provide.