IRA's in a Partnership

[ILLMAS]

TP recieved a K-1 for an IRA he was, but I was wondering when should this report? When he cashes out? I don't remember where I read this before, but from what I remember the K-1 are reported on TP tax return until they take a draw, can someone just confirm this.

Thanks

[kcjenkins]

Is this a self-directed IRA? Income to an IRA should go to the trustee, it is not income to the owner of the IRA until he takes a distribution, and then it is on a 1099R.

[JRS]

Unless there is UBIT, you do not report anything on the K-1, even when they cash out. When the owner takes distribution the partnership would be liquidated, if necessary, and would be, as KC stated, reported on a 1099-R.