A Roth IRA must file Form 990-T if it has gross unrelated business taxable income (UBTI) exceeding $1,000 in a given year. This threshold applies per IRA, not per investment.
- UBIT must be paid by the IRA from its own assets, not from the IRA owner's personal funds.
- The IRA custodian is generally responsible for filing Form 990-T and paying the tax.
