IRAs can be subject to Income Tax

by | Apr 7, 2023

ARTICLE | April 07, 2023

IRAs are an important tool for many individuals when it comes to managing their long-term financial goals. IRAs are generally considered investment vehicles that are exempt from tax, but this may not always be the case. IRAs may be subject to the unrelated business income tax (UBIT). It is important to understand the requirements and implications of the UBIT on IRAs in order to remain compliant with tax laws. 

This article takes a closer look at IRAs and the UBIT, discussing what is subject to the UBTI, what is excluded investment income, and introduces unrelated debt-financed income (UDFI). It also explains how to identify UBTI, as well as how and when to report and pay the associated taxes. With this information, readers can make informed decisions about how to manage their IRA investments.


Read the full article here…

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