No, you don't need to report the K-1 Statement within your IRA. All investment activity that occurs within
your IRA is treated the same, regardless of the form it takes. Dividends,
interest and capital gains are all allowed to grow without creating a current
tax obligation or additional reporting.
Note: If you have UBTI on your K-1 statement (box 20 V):
- If
the IRA earns $1000 or less, there is nothing you need to do on your tax
return.
- If it is more than $1000, there's still nothing to report on your tax return; but the IRA administrator may provide the IRS with form 990-T that might generate a tax liability on the amount exceeding $1000; the tax will be paid out of the IRA account.
