We withdrew money from my wife's IRA for a home improvement. I was told that I could reduce her AGI by the amount of the management fees paid in 2017. Is this true

[dkoperski]

Sorry, it was from an IRA not the 401.  Is the answer still the same?

Thanks

[MichaelL1 · Accepted solution]

No, it is not true.  The management fees can be Sch A itemized deduction if paid separately with money outside of the retirement account.

First, you must be able to itemize on your taxes, and 

2nd this amount has to be paid separately from money outside of the retirement account, and 

3rd it must exceed 2% of your Adjusted gross income to be deductible. 

They never reduce your AGI.