Follow-up Q: If such 990T rules require taxation within an IRA at a very high % rate, don't such rules undermine the original stated purpose of tax deferring all gains incurred within an IRA until actual distributions? Second, does such definition of UBTI calculate capital gains or losses differently than under a person's income for reporting on From 1040? I see one net capital gain on my monthly IRA statement and another much higher number for a capital gain being stated on Form 990T.
