Are investment fees for my IRA tax deductible?
The investment fees that are charged to my IRA account are deducted from the IRA. Are these fees deductible from my adjusted gross income (AGI)?
Fees paid from within your IRA are not tax deductible. If you paid the fees from another investment they may be deductible as a miscellaneous expense. This deduction goes away for tax year 2018 thanks to the trump tax plan.
There was a letter ruling on this some years ago permitting the deduction of IRA management fee's under the misc. deduction category. Some CPA's will accept the letter ruling and therefore the deduction, while others will not. Another caveat, it has a 2% floor. Meaning, only those expenses in excess of 2% will be deducted. However, from 2018-2025 the misc. deduction will be eliminated.
Great question, I hope this helps.
No, they are not. Your IRA grows tax-free so fees are not tax deductible. If it is a traditional IRA, your contributions are tax-deductible providing you are under the income limits as stipulated by the IRS. The income limits vary depending on whether you are also covered by a retirement plan through your employer or not as well as your filing status. Internal expenses for mutual funds or ETF's are never tax deductible regardless of the account type and investment advisory fees paid out of taxable accounts outside your retirement accounts USED to be tax deductible up to 2% of your AGI, but with the new tax reform, that deduction has gone away.
Please note that the rules for the deductibility of such fees effectively changed with the recently enacted changes to the tax law. Previously, such amounts could be deducted as miscellaneous itemized deductions. However, under the tax rules as in effect for 2018, there are no longer miscellaneous itemized deductions that you can claim on your tax return. As a result, as I discuss in question #5 here, investment fees are no longer deductible. If you have an IRA, you can effectively get a tax benefit of a sort by having such amounts taken directly from your IRA. This will essentially make such payments tax free, as the amount in your IRA was tax free, and the amount used to cover your expenses is also "withdrawn" tax free.
I hope this helps.