Managed Money account

It is my understanding that the fees inside a managed money account is tax deductible.
What is the process to have those fee deductible??



Fees for a managed account are tax deductible if they are paid from after-tax funds. So if you have a taxable account, the items deducted can be claimed as a miscellaneous itemized deduction subject to the 2% limitation. If the managed acount is tax-deferred like an IRA, SEP etc. the fees can only be deudcted if they are paid from after-tax money. So if the IRA fees are paid from the taxable account, they’re deductible. Also if you submit a check to the custodian for the fees they are deductible. If you are subjemt to Alternative Minimum Tax – the deduction is added back for the calculation and you may not benefit in full from what was paid.



Thank you



It is not always prferable to have managed account always. So are these rules apply to other type of accounts also?http://feelday.com



Add new comment

Log in or register to post comments