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Ask a Fool: Should MLPs Be in Your IRA?

In this video as part of the Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a Fool reader, who asks, "Can you talk about MLPs? What are MLPs and should you have them in your IRA? Maybe you can suggest a few MLPs you like."

Jason discusses what an MLP is, and why this asset class is known for its high dividend yields, and he also discusses how some of the tax implications of the MLP could mean that holding these assets within an IRA might not be the right move. Finally, Jason takes a look at Kinder Morgan Energy Partners (NYSE: KMP  ) and El Paso Pipeline Partners (NYSE: EPB  ) , and tells investors why he thinks these two could make great MLPs to dig into further.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 15, 2014, at 10:17 AM, Wintertexan wrote:

    As usual you have given nothing of any help to some of us who have made maybe investment mistakes and have MLPs in IRAs or are thinking of MLPs as an investment.

    I'm sure your answer will be see your local accountant or Tax advisor with your problem. That's great if you have a million dollars in your IRA but most of us don't and never will have. So you end up spending most of the RMD on these pros and usually don't receive the information you need anyway.

    Give examples: Show buying a 100 shares of KMP or WPZ in a normal savings account vs a 100 shares in an IRA. Show buy/sell in one year and then show results after buying and then selling after 2 years.

    Cover the Adjustments to Cost Basis, Recapture, UTBI, ect. otherwise your not saying anything of real value.

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Jason Moser

Jason A. Moser is an analyst for Motley Fool One. He finds stocks that make money and tells the world about them. He's also won a Buzzy. And an Awessie.

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12/31/1969 7:00 PM
EPB $0.00 Down +0.00 +0.00%
El Paso Pipeline P… CAPS Rating: ****
KMP $0.00 Down +0.00 +0.00%
Kinder Morgan Ener… CAPS Rating: *****