Federal Tax Treatment of Investment Advisor Fees?

[Guest rrocket61]

Are withdrawals from IRAs (Roth or Conventional) to pay for Investment Advisor Fees on that account considered taxable income and subject to the 10% early withdrawal penalty?

[Guest Brent Rowell]

I'm not an authority but thought someone should reply...

Never heard of it ..... Assume tax + penalties

[Carol V. Calhoun]

Withdrawals would be taxable, but why make them? If the account pays the fees directly, they should be considered an administrative expense of the account itself, not a withdrawal.

[Guest GAT]

Investment advisory fees deducted directly from an individual's IRA account are considered an expense of the account and are not taxable to the IRA account holder. Of course, neither are they deductible by the account holder as a miscellaneous itemized deduction.

[Guest RJT]

See PLR 9332040 and 9845003. They'll be nontaxable under certain conditions for the qualified annuity market, but not for the nonqualified market.

[Guest gmann]

Some investors are well aware that investment advisory fees are generally non-taxable from IRAs and 403(B)s, but taxable (capital gains) from the non-retirement money. They will therefore try to take all investment advisory fees for their entire portfolio from an IRA or 403(B). Of course, this is not permitted -- only investment advisory fees for a particular IRA or 403(B) can be taken from that retirement plan account.