Re: OT - ET - OT
UBTI is one thing but I think the reason most people discourage holding MLPs in an IRA is that you lose the tax advantaged benefit.
I for one don't think that's a valid reason. I hold all of my remaining MLPs in a taxable account. The problem is that when these are: converted to C-Corps like OKS, bought out like BPL, or sold by the owner, a taxable event occurs that is very very painful. The accumulated distributions that you've received over the years get taxed at ordinary rates (recapture) PLUS you pay tax on capital gain. For very long term holders, taxes can be as high as 40-50% of your sale proceeds. You basically end up paying all of the taxes that you would have anyway had this been another pass-through like a REIT. The difference is you're paying it all at the end instead of pay-as-you-go. In hindsight now after owning MLPs for 16 years and losing most through conversions, buyouts etc, I think I prefer pay-as-you-go approach.
MPLs are complicated and this is a simplification, but the big-picture nature of my answer is right.
Long story short, IMHO, there's not a darn thing wrong with holding MLPs in an IRA.