You can hold MLP shares in a retirement account, such as a Roth IRA. But unlike other IRA investments, MLP income can be immediately taxable if it reaches $1,000 or more. If you’re going own one or two bread-n-butter MLPs in an IRA, you’re probably going to be all right. The key would be position size and checking that K-1 statement to make sure that it’s not getting close to that $1,000 mark. If it is, then it’s time to sell. The real question is whether or not you want to place them in an IRA. Given their already ingrained tax advantages, MLPs are best suited as taxable accounts. Dear Tax Talk, I have shares/units in a master limited partnership, or MLP, in an IRA. This MLP will be acquired by another company and the shares will be converted into the shares of the buyer.