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midpitts
Level 3

Management fees paid for SimpleIRA or Sep IRA are they expenses for Sole Proprietors?

Can I list as a business expense on my Schedule C the charges I paid to my investment advisor/ manager for overseeing my Simple IRA, Sep IRA or Solo 401K?

3 Replies
ColeenD3
Expert Alumni

Management fees paid for SimpleIRA or Sep IRA are they expenses for Sole Proprietors?

No. Business expenses are those which are ordinary and necessary for you to be able to conduct your business.

 

Management fees paid from your IRA account have never been deductible on your federal tax return.

 

In addition, separately-paid IRA management fees are no longer deductible in tax years 2018 through 2025 due to the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017.

 

In 2017 and prior tax years, separately-paid IRA management fees were eligible for deduction under the 2% rule as an investment expense.

Severnaenc2
Returning Member

Management fees paid for SimpleIRA or Sep IRA are they expenses for Sole Proprietors?

Where do i list management fees paid to financial advisors?

MayaD
Employee Tax Expert

Management fees paid for SimpleIRA or Sep IRA are they expenses for Sole Proprietors?

The Financial Advisor fees is considered Investment Expenses. Under the new tax law, investment expenses aren't deductible on your federal return, but some states still allow you to deduct them on your state return.

To enter your Expenses:

  •  Sign into your TurboTax account 
  •  Select Federal Taxes tab
  •  Select Deductions & Credits
  •  Scroll to Retirement and Investments
  •  Select Other Investment Expenses
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