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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2822
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Is the management fee (which was previously 401K money)

Customer Question

Is the management fee for IRA (which was previously 401K money) a deductible item for tax purposes when you are eligible to itemize?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Unfortunately - that is NOT deductible as that expense is related to tax deferred account.However - when the management fee for IRA are paid out of that account - that expense is NOT reported as taxable distribution.
Expert:  Barbara replied 1 year ago.
Different expert here - My name is ***** ***** I have a different answer.
Management fees paid through the IRA account cannot be deducted. They simply reduce the value of your IRA.
However, management fees paid by cash or check by you separately and which are not deducted from the IRA can be deducted as investment expenses.
You can make arrangements to pay any management fees with your own funds before the fees are taken from your retirement account. Keep the appropriate records so you can deduct the investment expense.
Please let me know if you require further information or clarification.
Thank you and best regards,
Barb

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