To the best of my understanding, you can hold MLPs in a tax deferred account. If the sum of Unrelated Business Taxable Income (UBTI, find it buried in a box on the K-1) from *all* mpls becomes greater than $1k, then you'll have to pay tax on that income even though the account is tax deferred. Most of my MLPs have very low ratios of UBTI / distribution, so I could concievably get a great deal of income w/o crossing that $1k threshold.
Thing r subject to change, and I leave the motivation for wanting MLPs in tax deferred to others.
Hi, you can buy some close-end funds that hold MLPs in your IRA; I own a couple from Clearbridge Adivsors: EMO and CEM. SPH is in EMO. The yield is a bit lower than individual MLPs. You get a 1099-div instead of a K-1.
You mean for the closed end fund EMO that has SPH in it you get a 1099-div?
I guess that's a good way to play it in an IRA. But if you don't like what else is in the fund I don't think they will let you put SPH by its own in your Retirement account, its one of SPH's FAQ's on their website and the IRS has some jargon about it that my brain can't quite comprehend.
Happy Thanksgiving to all my partners!