Master limited partnerships (MLPs) have unique risks, and …

Master limited partnerships (MLPs) have unique risks, and may create complex tax liabilities, particularly for retirement accounts. Due to their unique tax structure, MLPs may generate unrelated business taxable income (UBTI) that can create tax liabilities for retirement accounts and tax-advantaged investors. If this is a retirement account, and UBTI exceeds certain annual limits set by the Internal Revenue Service (IRS), Fidelity may be required to file a Form 990-T on your behalf, along with a tax payment, interest, and penalties to the IRS. Please consult a tax advisor if you plan to purchase an MLP in a retirement account.

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