Wrong Plan Investments Can Create Unrelated Business Tax Income

Practical Tax Strategies/Taxation for Accountants (WG&L) Taxation for Accountants 1997 Volume 58, Number 6, June 1997

5 Pages Posted: 4 Dec 2013

See all articles by Gerald E. Whittenburg

Gerald E. Whittenburg

San Diego State University

William A. Raabe

University of Wisconsin - Whitewater - College of Business and Economics

James E. Williamson

San Diego State University - College of Business Administration

Date Written: June 1, 1997

Abstract

If an exempt employee trust invests in an asset producing unrelated business taxable income, not only will the trust become taxable, but the trustee may have personal liability for mismanaging the trust's funds. Most tax practitioners have not been concerned with these UBTI provisions in relation to IRAs and pension plans, since they are usually a concern of charitable and other exempt organizations or trusts. Recently, an IRS ruling emphasized the importance of being careful when dealing with self-directed IRA and pension investments to avoid the potential surprise of UBTI problems.

Keywords: retirement plan, ubti, employee retirement trust

JEL Classification: H21, H24, K34

Suggested Citation

Whittenburg, Gerald E. and Raabe, William A. and Williamson, James E., Wrong Plan Investments Can Create Unrelated Business Tax Income (June 1, 1997). Practical Tax Strategies/Taxation for Accountants (WG&L) Taxation for Accountants 1997 Volume 58, Number 6, June 1997. Available at SSRN: https://ssrn.com/abstract=2362332

Gerald E. Whittenburg

San Diego State University ( email )

5500 Campanile Drive
San Diego, CA 92182-8230
United States
619-594-5693 (Phone)

William A. Raabe (Contact Author)

University of Wisconsin - Whitewater - College of Business and Economics ( email )

Whitewater, WI 53190
United States

HOME PAGE: http://billraabetax.com

James E. Williamson

San Diego State University - College of Business Administration ( email )

School of Accountancy
San Diego, CA 92182-8230
United States
619-594-6021 (Phone)

HOME PAGE: http://www.sdsu.edu

Register to save articles to
your library

Register

Paper statistics

Downloads
21
Abstract Views
231
PlumX Metrics