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Level 1

Can I deduct ROTH IRA advisor (management) fees paid from a taxable account?

I pay an advisor fee equal to a percentage of my accounts value.  I have a taxable account, a Roth IRA and a regular IRA all with the same financial advisor.  I am billed separately for the management fee for each account.  I paid the advisor fees for the Roth and taxable account from the taxable account.  (I paid the advisor fee for the regular IRA account from that account, and I am not deducting those fees.)  Since the ROTH IRA is not producing taxable income, is the advisor fee for that account still deductible? 

2 Replies
Level 1

Can I deduct ROTH IRA advisor (management) fees paid from a taxable account?

I have seen other answers on the internet where people say that ROTH IRA management fees are deductible, such as: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3723965-are-roth-ira-administration-fees-tax-deductable;">https://...> <a rel="nofollow" target="_blank" href="http://budgeting.thenest.com/can-deduct-advisory-fees-roth-iras-28694.html">http://budgeting.thenest...> ; <a rel="nofollow" target="_blank" href="https://www.fool.com/knowledge-center/can-i-deduct-advisory-fees-for-roth-iras.aspx">https://www.foo...> and <a rel="nofollow" target="_blank" href="http://thefinancebase.com/can-deduct-advisory-fees-roth-iras-3734.html">http://thefinancebase.com/ca... anyone point to an IRS rule or document that resolves this question authoritatively?
Level 1

Can I deduct ROTH IRA advisor (management) fees paid from a taxable account?

The IRS rules state: "You can deduct fees you pay for counsel and advice about investments that produce taxable income. This includes amounts you pay for investment advisory services."  As you point out, distributions from your Roth IRA will not be taxable income, so the advisory fee is not deductible.