Unrelated Business Taxable Income (UBTI)
Income regularly generated by a tax-exempt entity by means of taxable activities. This income is not related to the main function of the entity, but is needed to generate a small portion of income. Investopedia Says:
If an investor holds an Individual Retirement Arrangement (IRA), and the fund generates income which qualifies as UBTI, the fund may be subject to taxation. Related Terms:
Income Tax
Individual Retirement Account - IRA
Pension Plan
Roth IRA |