Distributions:Tax on true gross, or tax on gross net of fees?

[austin3515]

How about this: Taxing them on distribution fees that they paid is no different then taxing them on recordkeeping fees that they paid.  They reduce their account value in exactly the same way and are expenses of the plan related to administering the Plan. 

[stephen]

Thanks!

[Bill Presson]

On 6/20/2018 at 1:35 PM, stephen said:

This issue came up in our office today and searching led me here.  I wonder if the IRS knows about all of these fees leaving retirement plans that they are not collecting income tax on...

They do collect tax on the fees from the business that is paid the fee.

[stephen]

Thanks