Unrelated Business Taxable Income
Can a regular IRA invest in Publicly Traded Partnerships that produce UBTI? I have a client whose broker told him they could not.
Can a regular IRA invest in Publicly Traded Partnerships that produce UBTI? I have a client whose broker told him they could not.
Permalink Submitted by Alan Spross on Tue, 2012-04-24 17:55
Yes, an IRA may hold these and other investments that produce UBTI. However, if such UBTI exceeds $1,000 per year, the IRA must file Form 990 and pay taxes on the UBTI. The cost for filing the return must also be billed to the IRA account. Some custodians will file the return and some will not.