Are advisor fees from an IRA account subject to federal income tax?

[bradmars52]

ask a cpa

[xmasbaby0]

You cannot deduct the advisor fees, if that is what you mean.   Miscellaneous fees and expenses such as those have not been deductible on a federal tax return since 2017.

[bradmars52]

My question is not if I can deduct advisor fees.

My question is when the advisor takes their fee from the IRA account, will this withdrawal from the account be treated as a distribution by the IRS requiring me to pay additional federal income taxes related to the total of all advisor fees taken from the account during the year.

I have seen conflicting results from online searches and I am wondering if you could share any links to IRS docuemnetation that clearly spells our if advisor fees are part of the reported gross income

[VolvoGirl]

No it shouldn’t be taxable.   Transactions inside the IRA account are not reported.   You shouldn’t get a 1099R for it.   You only report distributions, rollovers or conversions you make.