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lgingell
New Member

Every month Amerprise Financial deducts a "Management Fee" from my Retirement Account with them. Is this a tax deductible fee ? and if yes, where is it deducted?

 
6 Replies
HelenaC
New Member

Every month Amerprise Financial deducts a "Management Fee" from my Retirement Account with them. Is this a tax deductible fee ? and if yes, where is it deducted?

Please see the revised answers below.
HelenaC
New Member

Every month Amerprise Financial deducts a "Management Fee" from my Retirement Account with them. Is this a tax deductible fee ? and if yes, where is it deducted?

Yes, you may be able to deduct your fees, if you pay them outside of your retirement account or the second answer below. Please see the DPer IRS Publication 17 page 202 Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income.

Investment management expenses are a miscellaneous deduction on Schedule A (Itemized Deductions) subject to 2% of your adjusted gross income. Click on  What is the 2% rule?

To enter investment fees and expenses:

  • Type investment expenses in the search/find box and click search
  • Click on Jump to investment expenses
  • Click No on the Investment Interest screen
  • Click Yes on the Other Investment Expenses
  • Continue with the onscreen questions.

Related information:

[Edited 1-28-18|7:02am PST]

dmertz
Level 15

Every month Amerprise Financial deducts a "Management Fee" from my Retirement Account with them. Is this a tax deductible fee ? and if yes, where is it deducted?

The fee is deductible only if the management company reports the payment of the fee as a distribution from your retirement account, essentially making the fee payment from money that is no longer retirement money.

If the payment of the fee is not reported on Form 1099-R as a distribution, it is not deductible on your tax return.  The fee is essentially being paid with money that was never taxed and, since the fee payment has reduced the value of your account, never will be taxed, you don't get to deduct it.

JackStone
Returning Member

Every month Amerprise Financial deducts a "Management Fee" from my Retirement Account with them. Is this a tax deductible fee ? and if yes, where is it deducted?

I don't follow the logic. Management fees paid from my checking account would be paid on income that was taxed. Why would that option make the fees assessed on traditional IRA accounts nondeductible? Also, fees on after-tax Roth IRA's should be deductible.

VolvoGirl
Level 15

Every month Amerprise Financial deducts a "Management Fee" from my Retirement Account with them. Is this a tax deductible fee ? and if yes, where is it deducted?

First of all, This is a new forum layout. Some posts that have June 2019 dates are really older posts from the old forum that got moved over. So they might be for prior years and not current info. When they migrated over the dates got changed to June 2019. And the screen shots got deleted. 

 

Investment fees paid are no longer deductible anymore anyway so it's a moot point.

 

But if the fees are paid from inside the IRA or retirement account they were not deductible.  You would just have less money to be taxed on when you took a distribution.

 

If you paid the fees with other personal money like from your checking account you used to be able to deduct it if you Itemized deductions.  

 

See Deductions that have been suspended for 2018-2025

https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-b...

 

 

JackStone
Returning Member

Every month Amerprise Financial deducts a "Management Fee" from my Retirement Account with them. Is this a tax deductible fee ? and if yes, where is it deducted?

For anyone who chooses the Help option in Turbotax and ends up with out-of-date results on investment fees, the IRS answer is:

Investment Fees and Expenses
Investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income are miscellaneous itemized deductions and are no longer deductible.

https://www.irs.gov/publications/p529#en_US_2019_publink10004392

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