06-06-2016, 12:20 PM
(This post was last modified: 06-06-2016, 12:21 PM by Dividendsrule.)
There has been much written about the subject, but the fact is, MLPs exceeding a certain amount of UBTI are still taxed even in a retirement account.
I believe you don't have to worry about it until UBTI exceeds $1,000.
My understanding is that it really came up in droves when people went from KMP to KMI.
It is for this reason that I avoid MLPs taxed via K-1 in retirement account.
Canadian stocks do not withhold tax if it is in an IRA, that is the deal made with USA. So in your individual account, yes Canadian stocks will have dividend withholding. But in an IRA, no withholding.
I believe you don't have to worry about it until UBTI exceeds $1,000.
My understanding is that it really came up in droves when people went from KMP to KMI.
It is for this reason that I avoid MLPs taxed via K-1 in retirement account.
Canadian stocks do not withhold tax if it is in an IRA, that is the deal made with USA. So in your individual account, yes Canadian stocks will have dividend withholding. But in an IRA, no withholding.