Hello,
I have shares in Sunoco LP. I received a K-1 from Sunoco and when I went to add the K-1 to my return in TurboTax it indicated that since the K-1 indicated the partnership was in a IRA/SEP/KEOH and the I2 box was checked that the K-1 was not necessary and would be deleted. I have read that Master Limited Partnerships that generate more than $1,000 in income are immediately taxable, even in an IRA. I received about $1,200 in dividends from the partnership in 2020. Was TurboTax correct in deleting the K-1, or should I have filed it with my return? I did not receive anything from my brokerage, just the K-1 from Sunoco directly. Will I simply pay ordinary income tax on the gains when I withdraw them from the IRA when I retire? I don't want to create a mess if I keep earning from this investment and don't pay taxes because TurboTax says I don't have to. I can liquidate the investment and move it into a taxable account if that cleans things up. Thanks for your input.
