substitute payment in lieu in a K Roth

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flaresident
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Joined: Mon Jun 25, 2018 12:43 pm

substitute payment in lieu in a K Roth

Post by flaresident »

Hello All! Can anyone confirm (or refute) that cash in lieu given as a credit adjustment for stock lent in a Solo 401K Roth account is tax-free? Fidelity included it on a 1099MISC to the IRS. many thanks!
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LadyGeek
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Re: substitute payment in lieu in a K Roth

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) forum (taxes).
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Topic Author
flaresident
Posts: 35
Joined: Mon Jun 25, 2018 12:43 pm

Re: substitute payment in lieu in a K Roth

Post by flaresident »

Thank you LadyGeek! I wondered...
pshonore
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Re: substitute payment in lieu in a K Roth

Post by pshonore »

In a taxable account, "payment in lieu" is normally taxable and brokers usually increase the amount to cover taxes if you request it. Not sure about a Roth. Hopefully its not considered UBTI. What's a "K Roth"?
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