a little extra work at tax time and you lose out on some of the tax advantages if you go MLP in an IRA. I have a taxable account just for MLPs........((( KMR or KMI work a bit better in an IRA. ))) but to each their own... trade well
Yes, there could be tax issues if ANY MLP is bought is an IRA. It would be wise to ask a professional tax accountant that is familiar with MLP's. And if you are smart you will ask before you buy it in an IRA or Roth Ira or any other tax advantaged account. Then you can make an intelligent decision for your circumstances.
A small MLP position is better off in a IRA because of a simpler tax return. A large position is better off in a taxable account to take advantage of tax deferral . People who talk about tax problems of MLP in a IRA fall into two categories , The Short Seller and the uninformed.
no issues with KMI since the company has paid tax on your distribution. KMP gets taxed after the first thousand bucks since they have paid no tax on distributions. Look it up if you need the details, the custodian pays the taxes.