Taxes, purchase/redemption fees & Roth IRA

[Guest TnGuy]

My wife and I just purchased into Vanguard's Emerging Markets Stock Index Fund (VEIEX) via our Roth IRA's. The VEIEX fund has a purchase and redemption fee structure of 0.05% for each move in or out of the fund.

I was wondering if anyone knows how this fee is handled in terms of taxes:

- is it written off as an investing expense?

- or is it written off against any gain/loss upon sale?

Thanks for all of your help in this matter.

TnGuy

[Guest heike]

I would like to know, too.

As far as I know, there is no writing off against gain/loss, since it is a Roth IRA.

When I transfered money from one Vanguard fund into the Emerging Market Fund, the purchase fee was withheld & not transfered; it was just used up for the process of transfer.

To start an account from scratch, I belive that you can write it off as investment expense.