Master Limited Partnerships?

My friend has told me never to use them in a taxable account, they can create a tax filing nightmare?
Are they okay to use in retirement account? I know they like any investment have their own risk characteristics, just wondering if there is any problems when it comes time to tax preparation. Thoughts?

I don’t know what Master Limited Partnerships are, but generally retirement accounts only have tax implications at three points: contribution, conversion, and withdrawal. Thus, if you can find an administrator that will let you invest in something, you don’t have to worry about taxes even if there is buying and selling that would have to be reported in a taxable account.

There are rules about self-dealing with investments in retirement accounts. I’d expect this investment, whatever it is, to be more likely have problems with those rules than with taxes per se.

So the answer is that they are fine to hold in a retirement account, however there are limits as to how much UBTI you can receive in your accounts.

I own both EPD and MMP in my taxable accounts and both are MLPs and I receive a K-1 at the end of the year for each one.

interesting. Thank you!