Unrelated Business Income Tax
On May 10th
One of the most complicated areas of self directed IRAs is Unrelated Business Income Tax (UBIT). It is commonly called UBIT. In certain situations, an IRA can owe taxes. UBIT will apply to specific types of accounts: Traditional IRAs, Roth, Simple, SEP and Educational Savings Plans (ESA). UBIT will not apply to 401(k) plans. It is important to discuss with your tax advisor the consequence of UBIT and how it will affect you. Basically, tax is owed on the non-IRA portion of an investment; usually it applies to the financed portion of investment. Read the rest of this entry »
