Are 401K plan fees tax deductible?

[sarab-sandhu]

Company which manages my 401K on behalf of my employer charges $100 every quarter to my 401K account as management fees? are those fees tax deductible?

[bwa · Accepted solution]

IRA and 401k maintenance fees cannot be deducted at all if they are paid by the tax deferred account. Instead, they would reduce the amount in the IRA or 401k, which would reduce the amount subject to tax when finally distributed.

If paid by you directly instead of in the IRA, they would be deductible as a miscellaneous itemized deduction, but only if you itemize, and subject to the 2% limit for miscellaneous itemized deductions.

[hbl3973]

So, from sarab.sandhu's description, the management fees are taken directly out of the 401k and are therefore not tax deductible at all.

[bwa]

That is correct.

[sandy128]

We draw from 401k once a year also have joint account that we use for trading and on social security do you charge fee for filing taxes