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The high yields paid by MLPs is due to the partnership not paying income taxes. Hence, the info is passed onto the shareholder who then pays at his level.

The MLP distributions received in a taxable account are tax free.
The MLP distributions received in a tax sheltered account are fully taxable in a tax when the money is removed from the tax sheltered account. Every dollar removed from an IRA is 100% taxable because it was originally funded with un-taxed money. In addition there is no step-up in value at time of death. After 70 1/2 you have to start taking RMDs (required minimum distributions) And once you start and die your heirs have to continue based on their age and pay taxes on every Dollar. Securities in taxable accounts get stepped up to current value at time of death so there is no tax obligation for the heirs
In an IRA in addition to the above there is also the UBIT problem with MLPs.

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