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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (10396)	11/14/2011 10:29:06 PM
From: JimisJim	2 Recommendations Read Replies (2) \| Respond to of 34328

I don't think that's the right section of IRS regs... MLPs are not charities and neither are IRAs... the tax form related to MLPs (and some other investments) is the K-1 form, not 990-T (at least not for us, maybe 990-T is something an MLP files, but not individuals/IRAs). But as someone else pointed out, the key is how much UBTI passes through to one's IRA. I have had MLPs for many years in one IRA and have never triggered any sort of fee or tax as a result... granted I don't have tens of millions invested in MLPs, but I do have a significant portion of my retirement savings in them and have never ever come close to having to concern myself with it... and my tax accountant usually tosses the K-1s into a pile and doesn't even file anything -- nor does he charge me for dealing with MLPs or K-1s in my IRAs... I've never owned an MLP in a taxable acct. as I use that for trading and I see little reason to trade MLPs... so I can't speak to MLPs in taxable accts., but really, unless one has a very large amount of money in MLPs, it seems unlikely the typical investor will ever have to deal with any tax or fee because of an MLP in an IRA. I've seen this discussion many, many times on many different boards and have never seen anything that would make me worry about any of it for more than a second or two. However, there is an MLP board at iV with people who will post dissertation-like info about K-1s/MLPs in IRAs and the bottom line is usually that it is rare indeed when anyone has to really worry about the issue. IMO, most who are concerned about K-1s spend a disproportionate amount of time on the issue only to discover they had nothing to worry about. Jim