Are distributions received via investments in a private equity fund through SDIRA taxable?
I work in private equity and am given an opportunity to coinvest in my fund. I talked to our tax team about potentially investing via my Roth IRA rather than simple cash wired from my checking account. They brought up that when I receive distributions, it may trigger a taxable event through UBTI or UDFI and I just want to understand in certainty whether that is true and under what circumstances it can be true? My goal is to invest with funds already in my Roth IRA and continue to receive tax free gains.
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