Investment Advisory Fees paid
I was recently informed at a professional conference that payment of advisory fees from an IRA are allowable and considered a non-taxable distribution from an IRA? Is this correct? Two earlier postings appear conflicted. One yes; one not so sure. If this is authorized, can you direct me to an IRS publication or other information where I can confirm that?
Thanks.
Permalink Submitted by Alan Spross on Mon, 2007-11-19 22:49
See att’d copy of prior post:
http://www.irahelp.com/cgi-bin/forum/index.cgi/noframes/read/21194
Due to PLR 2005 07021, if the fees are part of a “wrap fee”, he is on more solid ground than if they are advisory fees only. To be sure, ask the IRA custodian if the payment will generate a 1099R, because that is what the IRS will be looking at.