Brokerage Accounts and UBTI Tax

[52626]

Recently several of our clients received notification from the recordkeeper about Unrelated Business Income Tax on certain investments held within the brokerage account. If UBTI taxable income is $1,000 or more, the Plan will need file form 990-T and pay the tax.

Question - What all of a sudden is this an issue. Trying to figure out why the recordkeeper is just know sending out notices about the UBTI and the potential for tax. Has something changed that now Retirement Plans are no exempt from this Tax???

Thanks

[ESOP Guy]

Proposed questions on the 5500 are asking about UBTI.

The plans were never exempt.