In the following video, Motley Fool energy analyst Joel South fields a question from a Fool reader, who asks, "What is your opinion of pipeline MLPs in an IRA up to the IRS limit?"
One of the MLPs discussed is the one created by Energy Transfer Partners. The surge in oil and natural gas production from hydraulic fracturing and horizontal drilling is creating massive bottlenecks in takeaway capacity. However, this problem for producers creates a massive and immensely profitable opportunity for midstream companies. Energy Transfer Partners helps alleviate the glut in supply with 23,500 miles of transformational pipelines. To see if ETP and its industry-leading yield will be a fit for you, click on this detailed premium report, which will supply you with a thorough analysis of this midstream.
In this video It also sounds like the investor is expected to make a one time investment that will not grow, because if they put the limit every year, or reinvest distributions over twenty years, or Gov changes the ratio. UBTI might indeed become a problem from putting the wrong security in a sheltered retirement account.
ReplyDeleteWhat about a Roth, is UBTI a problem there?
What different effects does Death have on MLPs if it is held in or out, of a sheltered retirement account?
What would have happened if they put in the limit for the past fifteen years?
Sounds like he says perfectly illegal to do put an MLP in an IRA.