Deducting IRA Fees.(Individual Retirement Arrangement)(Brief Article)

Kiplinger's Retirement Report, April, 2005

If you use outside funds to pay a yearly IRA maintenance fee, add the fee to your list of miscellaneous deductions. Once those deductions, which can include tax and investment advice, exceed 2% of adjusted gross income, they're deductible.

Brokerage commissions incurred by trading securities held in your IRA are more problematic. If you pay commissions with non-IRA assets, as far as the IRS is concerned, you've made a contribution to your IRA. If you aren't eligible to make IRA contributions or your contributions coupled with your brokerage charges exceed the $4,000 annual IRA contribution limit ($4,500 if you're over 50), you'll face a hefty penalty.

However, if you pay a "wrap fee"--an annual fee based on the value of the assets in your IRA--you're...

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