"Brokerage communicated additional funds to cover fees can be deposited into retirement account and they do not count towards contribution limit. Is this correct?"
No, that's not correct. Other than funds being rolled over or transferred from another retirement account, any amount that you deposit into the account goes against your contribution limit. As TurboTaxMichaelL1 said, the brokerage can permit you to pay fees with non-retirement funds, but these are not deposited into the retirement account. If the brokerage instead takes money from the balance in your qualified retirement accounts to cover fees for your qualified retirement account, it's not a distribution and cannot be replaced. Also, funds are not permitted to be taken from a qualified retirement account to cover any fees for a non-retirement account without treating that portion as a reportable distribution from the qualified retirement account.
