UBIT, UDFI & UBTI
In a few specific circumstances, an IRA may invest in such a way that it is required to pay Unrelated Business Income Tax (UBIT). It is the account holder’s choice as to whether the account invests in an asset that might incur UBIT. UBIT payments must always come from the account itself and never from your own pocket. An IRA or HSA will use an IRS Form 990-T to calculate UBIT. We recommend consulting with your accountant or tax professional.