tst Posted March 25, 2015 Report Share Posted March 25, 2015 Fees for advisement advice are deductible but if someone is billed for "management fees" for an IRA but paid with funds inside the IRA (not billed directly) would you take as a deductio subject to 2% of AGI I know custodial fees if paid with funds outside of IRA ARE DEDUCTIBLE But not custodial fees with funds inside IRA BUT many clients have "management fees". Paid inside IRA. WOULD YOU DEDUCT? Rule says expenses to collect income "manage" income etc but is this only if fee billed separately outside IRA Thanks in advance. Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted March 25, 2015 Report Share Posted March 25, 2015 No 3 Quote Link to comment Share on other sites More sharing options...
tst Posted March 25, 2015 Author Report Share Posted March 25, 2015 Because Ira manage my fees not billed separately or because management fees shouldn't be deducted? Thanks for quick response. How about management fees in a brokerage account? Quote Link to comment Share on other sites More sharing options...
tst Posted March 25, 2015 Author Report Share Posted March 25, 2015 Some list on brokerage stmt "Advisory fees" some "management fees" Trying to understand if there's distinction between IRAs and regular brokerage accounts or if the distinction is if they don't pay for it separately there's no deduction Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 25, 2015 Report Share Posted March 25, 2015 The issue is not the management fees, it is the vehicle from which the funds being used to pay them are coming from. All the expenses in a retirement account are generating deferred income, hence they are not deductible. Fees in a brokerage account are for the generation of currently taxable income, and therefore can be deducted to offset the currently taxable income that they are creating. Tom Newark, CA 5 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 25, 2015 Report Share Posted March 25, 2015 (edited) A traditional IRS is already a tax deferred account, so if the funds are being deducted from the IRA, the money paying the fees has not been taxed. You'd be double dipping and only preachers can do that with mortgage interest, property tax and housing allowance. Don't get me started.You beat me, Tom. But I still love you. Edited March 25, 2015 by RitaB 1 Quote Link to comment Share on other sites More sharing options...
tst Posted March 25, 2015 Author Report Share Posted March 25, 2015 Thanks. Very helpful! Understand now. So managent fees in a brokerage account ok as after tax. Got it. 1 Quote Link to comment Share on other sites More sharing options...
tst Posted March 25, 2015 Author Report Share Posted March 25, 2015 Totally makes sense now!!! Really appreciate it. 2 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 25, 2015 Report Share Posted March 25, 2015 If you pay the IRA advisory fees with funds outside the IRA, you can deduct it, but it only makes sense to do this if the fees are large and you're already over the 2% limit because it both saves you taxes and leaves more money in the IRA. For most people it's smarter to pay the fees inside the IRA. 1 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 26, 2015 Report Share Posted March 26, 2015 Yup, I pay my IRA management fees from outside the IRA just so's I can deduct them. 1 Quote Link to comment Share on other sites More sharing options...
Randall Posted March 26, 2015 Report Share Posted March 26, 2015 If they have multiple accounts with the same broker, they can have the broker deduct the fees for all accounts from the non-retirement account. Therefore, getting the total fees outside the IRA and deductible on Sch A. That also lets their IRA build up more. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 26, 2015 Report Share Posted March 26, 2015 You beat me, Tom. But I still love you. Don't start with that 50 shades of grey stuff. I would never lay a hand on you or any other woman. And this is a family friendly forum. Lets keep it that way. Tom Newark, CA 3 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 26, 2015 Report Share Posted March 26, 2015 Don't start with that 50 shades of grey stuff. I would never lay a hand on you or any other woman. And this is a family friendly forum. Lets keep it that way. TomNewark, CAOK, whatever you have to tell yourself. Quote Link to comment Share on other sites More sharing options...
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