Tax Year Prior to 2020: Can I deduct Investment advisor fees paid for management of a retirement account that contains ETF's and mutual funds for equities and bonds?

phoebe-williams — Tue, 02 May 2023 16:45:51 GMT

Yes, if you pay it out-of-pocket outside of the retiremen...

KarenL2 — Tue, 04 Jun 2019 20:01:32 GMT

Yes, if you pay it out-of-pocket outside of the retirement account (assuming it's a tax deferred account). It would be a Miscellaneous itemized deduction on Schedule A. They are subject to a 2% of Adjusted Gross Income threshold. But, if they are high enough and you itemize deductions on Schedule A, it might benefit you.

To get to the general area to enter those fees: While inside the software and working on your return, type investment expenses in the Search at the top of the screen (you may see a magnifying glass there). There will be a popup that says Jump to investment expenses. Select that to get to the general area.

Follow the screens to the one that asks for investment advisor fees (or similar) and enter it there.

On Schedule A (Form 1040), line 23, you can deduct expenses that you pay:

1. To produce or collect income that must be included in your gross income,

2. To manage, conserve, or maintain property held for producing such income, or

3. To determine, contest, pay, or claim a refund of any tax.

You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes.

topic Tax Year Prior to 2020: Can I deduct Investment advisor fees paid for management of a retirement account that contains ETF's and mutual funds for equities and bonds? in Retirement tax questions

Tax Year Prior to 2020: Can I deduct Investment advisor fees paid for management of a retirement account that contains ETF's and mutual funds for equities and bonds?

Yes, if you pay it out-of-pocket outside of the retiremen...