Federal Income Tax Treatment of Investment Advisor Fee Withdrawals?

[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 fran krawiec]

The payment of investment advisor fees should not be handled as a withdrawal from the IRA. Instead, the custodian should pay the fees from the IRA assets and treat the payment as a debit to pay plan expenses. As such, the payment will not be reportable or taxable to the IRA owner.

[John G]

Some custodians allow IRA account holders to pay annual account fees by check instead of account withdrawal. You might want to inquire if the nature of the advisor fees associated with your account are similiar and might allow this.