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posted Jun 4, 2019 10:36:20 PM

Where do I enter Custodial fees for my Roth IRA?

Enter Expenses like safe deposit?

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1 Best answer
Level 15
Jun 4, 2019 10:36:21 PM

If your IRA fee is taken out of your account then it is not deductible, because it's being taken out of money that hasn't been taxed yet.

Some Banks/financial institutions let you pay the fee separately from your checking acct. In that case it is deductible, but it's an itemized misc. deduction subject to the 2% of AGI threshold. The hidden fee in a mutual fund , like the 1% management fee & expenses, is never deductible, because it is reflected in the NAV price and eventually reduces the capital gain.

Safe deposit box fees go in the same place.

2 Replies
Level 15
Jun 4, 2019 10:36:21 PM

If your IRA fee is taken out of your account then it is not deductible, because it's being taken out of money that hasn't been taxed yet.

Some Banks/financial institutions let you pay the fee separately from your checking acct. In that case it is deductible, but it's an itemized misc. deduction subject to the 2% of AGI threshold. The hidden fee in a mutual fund , like the 1% management fee & expenses, is never deductible, because it is reflected in the NAV price and eventually reduces the capital gain.

Safe deposit box fees go in the same place.

Employee Tax Expert
Jun 4, 2019 10:36:24 PM

Custodial fees are entered as an itemized deduction under the Retirement and Investments, Other Investment Expense section.