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Strategies & Market Trends : Roth IRA ideas

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To: who cares? who wrote (315)12/14/1998 8:54:00 AM
From: Colin Cody  Read Replies (1) of 388
 
I had originally expresses an opinion that operating a trade or business within an IRS or Pension MAY make you subject to the UBTI (an annual tax paid by IRAs on profits from a trade or business, and from debt financed operations)

But since then I have lightened up. The Regs say the IRAs/Pensions are exempt from UBTI on profits from Interest, Dividends, and Capital Gains, as long as they are not debt financed with in the IRA.

Perhaps this is a warning NOT to make a Sec 475 election within an IRA. This is only my quick thoughts. If you are actually planning on doing trading within an IRA, I suggest you pay you tax advisor to research it thoroughly on your behalf first.

Colin
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