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Level 1

Can I deduct retirement account maintenance fees?

 
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Level 1

Can I deduct retirement account maintenance fees?

It depends. Management fees paid through the IRA account cannot be deducted. They simply reduce the value of your IRA.

On the other hand, management fees paid by cash or check and are not deducted from the IRA can be deducted as investment expenses.

To maximize the growth of your retirement account, arrange to pay any management fees with your own funds before the fees are taken from your retirement account. Then keep records so you can deduct the investment expense.

  1. Sign in to My TurboTax.
  2. Next, click the Take me to my return button
  3. From within your return, click Federal 
  4. Then, Deductions & Credits
  5. Scroll to the Retirement and Investments section
  6. You will find two expenses sections:
    Investment Interest Expenses - If you borrow money to finance investments, the interest you pay is considered investment interest. If you have investment interest expense, you can deduct it up to the amount of your net investment income.
    Other Investment Expenses - To qualify for this deduction, your investment and other miscellaneous expenses have to exceed 2% of your adjusted gross income (AGI). (Choose this option)

Please feel free to post any additional details or questions in the comment section. 

1 Reply
Level 1

Can I deduct retirement account maintenance fees?

It depends. Management fees paid through the IRA account cannot be deducted. They simply reduce the value of your IRA.

On the other hand, management fees paid by cash or check and are not deducted from the IRA can be deducted as investment expenses.

To maximize the growth of your retirement account, arrange to pay any management fees with your own funds before the fees are taken from your retirement account. Then keep records so you can deduct the investment expense.

  1. Sign in to My TurboTax.
  2. Next, click the Take me to my return button
  3. From within your return, click Federal 
  4. Then, Deductions & Credits
  5. Scroll to the Retirement and Investments section
  6. You will find two expenses sections:
    Investment Interest Expenses - If you borrow money to finance investments, the interest you pay is considered investment interest. If you have investment interest expense, you can deduct it up to the amount of your net investment income.
    Other Investment Expenses - To qualify for this deduction, your investment and other miscellaneous expenses have to exceed 2% of your adjusted gross income (AGI). (Choose this option)

Please feel free to post any additional details or questions in the comment section.