K1 in IRA

Forum|Forum|1 year ago
February 13, 2025
1 reply
0 views

Hi. I some K1 papers comping from my IRA rollover soon. I was wondering if I need to file them with the IRS when I get them? It’s from a retirement account in my brokerage. It’s a IRA rollover account.

MAK70

You do not have to report a K-1 for an IRA on your personal income tax account. NOTE: You may have to file an Unrelated Business Income Tax Return, contact your plan administrator if you have questions on this.

Ryan871Author

It is an unrelated business income taxes. I know TurboTax doesn’t do that. Do I need to use a different place to file my taxes this year if it’s a UBI? I started with my w2 form this year with TurboTax. I didn’t file yet.

DavidD66

No you don't need to find another place to do your taxes. And you don't need to do anything about your UBI. If your IRA has invested in a publicly traded partnership (PTP), master limited partnership (MLP), limited partnership (LP) , private equity partnership (PEP), , hedge fund partnerships, or limited liability companies (LLC), your IRA may have received income that is Unrelated Business Income, and may be subject to tax.

Form 990-T is used to report UBTI income generated in a tax-deferred account. An exempt organization (e.g. an IRA) that has $1,000 or more of gross income from an unrelated business must file Form 990-T. IRA custodians (like Schwab, Fidelity, Vanguard, etc.) examines your Schedule K-1s to determine whether a Form 990-T is required, and files it for you if needed.

In tax year 1997, the IRS determined that custodians of IRA accounts are required to prepare and file Form 990-T if the gross income of an IRA meets the $1,000 threshold. Custodians must then remit any tax due.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"