Schedule K-1 for IRA


Today TaxMama® hears from David in the TaxQuips Forum with a quick question. “I received a Schedule K-1 from a fund included in my IRA. I did not make any withdrawals from the IRA, and it is supposed to be tax-deferred. Do I have to include the information from the Schedule K-1 in my 2011 tax return?”

Hi David,

Nope!

It just means your IRA has invested in something that is either a partnership, S-Corp or trust. They issue a K-1 to all co-owners.

If you look at yours, you will probably see that on line I (if it’s Form 1065 K-1), it says something like IRA or “exempt” or…where it describes the type of taxpayer.

You don’t need to do a thing.

And remember, you can find answers to all kinds of questions about IRAs, third-party reporting and other tax issues, free. Where? Where else? At www.TaxMama.com.

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2 thoughts on “Schedule K-1 for IRA

  1. Jim Spiegle says:

    Send the K1 to your IRA custodian. They may have to remit a payment (from your IRA account) if any ‘unrelated business income’ was reported. This ia a little-known tax law and a reason not to have partnerships in your IRA account.

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