IRA FEES PAID FROM DIFFERENT ACCOUNT

Submitted by Robert Sherman on Mon, 2015-02-16 14:19

Can you pay IRA and advisory fees on a Roth IRA account from a traditional IRA therefore preserving as much in your Roth as possible? Since the fees are not taxed when they come out of a traditional IRA this seems like an extra benefit. Does the IRS allow this?



Submitted by Don George on Mon, 2015-02-16 16:09

I was advised to pay advisor fees with your own personal funds outside of IRA funds or yearly contributions to insure deductibility. This involves the advisor sending you a bill (or deducting from a regular account) rather then just deducting from your IRA account.

Submitted by Alan - IRA critic on Mon, 2015-02-16 16:27

  • Fees should be allocated proportionately to the balances of Roth IRAs, non Roth IRAs, and taxable accounts. Any fees the taxpayer chooses to have directly paid from an IRA should not be more than the fees allocated to that type of IRA. But any of these fees can be paid from taxable accounts if desired.
  • Most taxpayers will benefit from having non Roth IRA fees directly deducted from those IRAs since they are being paid with pre tax dollars in the IRA. For those who can fully itemize the fees, they might be paid from outside funds. A 2% AGI floor applies to this misc deduction.
  • Roth IRA fees should NOT be deducted from a non Roth IRA. It is best to pay those fees from taxable sources.

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