I received a Schedule K-1 for an investment in an IRA account. Should a Schedule K-1 been issued for an investment in an IRA account?

Forum|Forum|6 years ago
June 4, 2019
3 replies
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It seems to me that this will end as taxable income and should not be since it remains in my IRA account.

TurboTax Premier Online

Best answer by ToddL

Yes, a Schedule K-1 should be issued for an investment in an IRA account, but you do not report the K-1 on your tax return.

Activity within an IRA account is reported to IRS by the fund Custodian, not IRA Owner. You get a copy of the K-1 for your records, just as you receive an information copy of Form 5498 (around May) each year. Both report what the custodian has already reported to the IRS.

ToddLAnswer

Yes, a Schedule K-1 should be issued for an investment in an IRA account, but you do not report the K-1 on your tax return.

ziggy252

This info needs to be incorporated in the software!

jannymv

One question - I received 1728 in distributions on a schedule K-1 I received for a partnership I hold in an IRA. Line 20 V which I understand may be taxable (UBTI) is 3458. Can I be taxed for an amount greater than the total of my distributions?

DianeC958

Yes you can be taxed on an amount that is greater than the amount of your distributions.

If this K-1 is from an investment that is held in an IRA account this information does not need to be reported on your tax return. The K-1 is for your information.

If you have income in Box 20 with a Code V and it is more than $1,000 you may need to also file a form 990-T. Your plan administrator should file the form and pay any tax that may be due out of your IRA account, but it is best if you follow up to make sure the form was filed and the tax was paid.

If your plan administrator did not file the form you are responsible to for filing it and paying any tax that may be due. You would need to print your return, sign, date and mail it in to the IRS with the form 990-T and K-1 you received.

[Edited 03/06/20 10:48 PST]

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gyaqwe

This answer is favorable for me - but is there a reference or a source for this info that you all can point to, please? Indicating that in IRAs, Schedule K1 should NOT be included on my tax-return?