Trustee Administrative Feese

[Guest tcd]

I have a Roth IRA. I purchase IPOs in mutual savings banks. Sometimes I am allocated shares. Investment banks do not charge commissions on purchasing shares in the IPO. I was charged a $25 purchase fee from my brokerage house in a recent IPO in which I received no shares. I was aware of this fee, as the brokerage house is paid for sending in the order form with a check to the issuing firm. The funds were returned with interest since I was not allocated shares -- that is a known risk.

However, I claim this is a Trustee Administrative Fee, and can be paid seperatly by my personal funds and deducted as an itemized deduction pursuant to Publication 529 (Miscellaneous Deductions). I had 2 of thes fees last year and anticipate incurring these fees over the next 20 years, so they will add up. Can someone provide a definition of Trustee Administrative Fees and a reference. Thank you.

[John G]

I think a third party would see this as a fee charged for special services that just applied to you. I have never seen any formal definition as to what qualifies as a deduction. What broker are you using?

[Guest tcd]

I use Waterhouse.

I would think a fee charged for "special services" could still be an administrative fee. I would think there is a definition for Trustee Administrative Fees in some IRS or other reliable source (RIA, etc).

Thanks