K-1 form 1065 required to be entered if related to an IRA?

[boldamerican]

I had looked on-line some time ago about a K-1 for an LP and it seemed it needed to be entered in my taxes. It is a publicly traded limited partnership. I was able to enter/upload the K-1 form 1065 file I received. TurboTax then asked if box I2 was checked (is this partner a retirement plan (IRA/Sep/Keogh). My box IS checked as the trades for this entity were in my IRA. TurboTax says "Good News! Becuase this K-1 is held by your retirement plan, you do not need to report any information about this K-1 on your personal tax return. It's sheltered from tax because it is part of your retirement account."

I see some references that seem to confirm this in comments - but most recents are from 2019 and I know things can change quickly. Thank for the help/guidance.

[PatriciaV]

Nothing has changed since 2019 with regard to Schedule K-1 received for an IRA. This excellent post from a TurboTax Expert includes good advice if you have questions about this K-1.

Per DavidD66 (2023): 

You do not need to report the K-1 you received for an investment you hold/held in a retirement account.  

If the investments in your retirement account generated total positive UBTI across all applicable investments held equal to $1,000 or more, then Form 990-T must be filed, and the related tax paid.

Unrelated business taxable income (UBTI) is income earned by a tax-exempt entity, such as an IRA, that is not related to the exempt purpose of the tax-exempt entity. The exempt purpose of an IRA is to provide for the retirement of the IRA holder.  More than likely, you didn't have $1,000 or more of UBTI; moreover, if you did, your retirement plan custodian would probably file Form 990-T and pay the tax on your behalf, which would then be a distribution from your account.  

If you think you may have had $1,000 or more of UBTI in an account, I suggest you contact the retirement plan custodian about how they deal with it.