fees
Client has a Roth and a Traditional at the same firm. The accounts are combined for valuation purposes in determining the fees, with each IRA being charged its pro rata share of the fee.
Client wants to have the fees for the Roth paid from the Traditional. My first impression is that doing so would result in a distribution from the Traditional for the amount of the fees.
Does the fact that the accounts are combined for fee purposes affect that first impression?
Permalink Submitted by Alan Spross on Wed, 2010-01-20 23:16
No. You are correct that this would be a taxable distribution from the TIRA. The pro rated share should be billed to each type IRA or paid from after tax funds instead of billing the IRAs. Paying from after tax funds might generate a misc itemized deduction.