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My investment advisor charges a fee for handling my IRA. If I take a partial taxable distrubution, can I deduct the fees on my distribution?

I am trying to determine my distribution portion of fees.
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Level 3

My investment advisor charges a fee for handling my IRA. If I take a partial taxable distrubution, can I deduct the fees on my distribution?

You can take the part of your fees that were paid on your taxable distribution ONLY as a miscellaneous deduction subject to 2% on Schedule A. 

Here's how you figure your deductible portion: 

Fees for your taxable distribution = total fees * (taxable distribution/total distribution) 

In Turbo Tax, the deductible portion of your fees go in Deductions & Credits, Other Deductible Expenses, Less Common Expenses, then enter Investment Expenses and the amount. 

 


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Level 3

My investment advisor charges a fee for handling my IRA. If I take a partial taxable distrubution, can I deduct the fees on my distribution?

You can take the part of your fees that were paid on your taxable distribution ONLY as a miscellaneous deduction subject to 2% on Schedule A. 

Here's how you figure your deductible portion: 

Fees for your taxable distribution = total fees * (taxable distribution/total distribution) 

In Turbo Tax, the deductible portion of your fees go in Deductions & Credits, Other Deductible Expenses, Less Common Expenses, then enter Investment Expenses and the amount. 

 


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New Member

My investment advisor charges a fee for handling my IRA. If I take a partial taxable distrubution, can I deduct the fees on my distribution?

@CherylW  This is no longer correct.  In 2018 the TCJA eliminated this itemized deduction.