UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: TMFBreakerRob Big gold star, 5000 posts Old School Fool Home Fool Supernova Phoenix 1
Mission Team Member CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 72  
Subject: Re: Buy in 401K vs taxable account Date: 2/13/2013 9:07 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Question 1: If someone was to consider investing money in an MLP within an IRA, is there any way (a rule of thumb) to determine a maximum amount that could be invested that would keep the UBTI at or below $1000?

It's entirely a function of the MLP. For a lot of MLPs, you could own a billion dollars worth with no issues. For others, the threshhold is very much lower... in five digits.

Question 2: You said, “Anyway..... if it is throwing off positive UBTI, any amount over $1000 annually in a IRA (or other non-taxable account) is taxable anyway... for that year. The amount is paid by the account administrator (meaning your broker)... who then bills you for the tax... plus administrative fees.” So, if there was a positive UBTI of $2000, a tax would be paid by your broker (for which you would be billed) on $1000. Since the broker doesn’t know your tax bracket, I assume there is a fixed tax rate they would apply to the $1000. Do you have any idea what this tax rate would be?

I really don't know. I'd suggest taking that question to the Fool tax strategies board: http://boards.fool.com/tax-strategies-100155.aspx

Question 3: You gave reference to an MLP discussion board on Yahoo. I have a portfolio set up on Yahoo, but from this website, I was unable to find this board. Would you please provide a link? Thank you.

My mistake. It turns out that the MLP board I referenced is at InvestorVillage.com You have to join to participate. I thought that was no big deal.

Sorry 'bout that!

Rob
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Kate Spade's Wild Ride
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement