How to treat foreign taxes withheld from a rollover pre-tax IRA from which no distributions have been taken?

[rdhatcher]

I finally noticed that my custodian's statements for my rollover IRA shows foreign taxes withheld, although I have taken no distributions.  This IRA came from my 401k which was pre-tax, and the IRA is supposed to keep it that way.  My investment adviser firm's fees are taken directly from the IRA by the adviser firm, and I understand those to not be subject to taxes.  I have gotten no tax forms of any kind that even list these foreign taxes; they only show up in the depths of the periodic statements from the custodian.  How should this be handled in Turbotax?  Are these taxes claimed as credits when I eventually do start taking distributions?  Do I need to do anything  in regards to these in my current tax forms before I actually start taking distributions?  What forms do I need from the custodian to support whatever is entered in Turbotax whenever I need to reference these taxes in Turbotax?

[ColeenD3]

Just as your IRA has the advantage of growing tax-free, so too, it has the disadvantage that expenses are not deductible.

Unfortunately, you won't be able to deduct foreign taxes you pay on investments held in a tax-deferred account, such as an individual retirement account (IRA) or 401(k). Since the income in those accounts is not currently subject to U.S. tax (at least not until you begin making withdrawals).

Foreign tax

Foreign tax 2

[rdhatcher]

Thanks for the quick answer.  That leads me to ask another question.  Assuming that I need some kind of documentation other than my periodic account statements, do I need to get that documentation now or can I wait and ask for it when I do take finally take distributions?

[LinaJ2020]

Why was there a foreign tax being withheld on an IRA ?  You can claim a foreign tax credit only if you pay to both the foreign and US government.  If you are not reporting the distribution to the IRS and pay taxes, you do not qualify for the credit. 

You might need to contact your fidelity to verify the reason and when you normally receive the documentation.  For US tax purposes, they are required to issue you a Form 1099-R in the year when you take out the distribution. 

@rdhatcher

[rdhatcher]

As I said in my previous comments and questions, there was no distribution to me from the IRA.  The IRA does have both foreign and domestic stocks, and I don't know why foreign taxes were withheld when no distribution was taken.

[LinaJ2020]

I will definitely advise you to contact your fidelity to find out why.