Our retirement investments are managed by Bank of Ann Arbor. They take .5% of our earnings directly out of the account. Does this qualify as investment interest expense?

[Hildegard]

My husband took his first withdrawals from this TIAA account in 2017 ($12,000 total). Our total account value is over $1.5 M, so the annual fee is roughly $7500. It is taken directly from our account, but we get statements showing the amount.

[Coleen3]

Not as an investment interest expense, but possibly as an investment expense.

Here’s a list of investment-related expenses that you may be able to deduct:

• Fees for investment counsel and advice, including subscriptions to financial publications
• IRA or Keogh custodial fees, if paid by cash outside the account
• Software or online services used to manage your investments
• Safe deposit box rent, if used the box to store certificates or investment-related documents
• Transportation to your broker’s or investment adviser’s office
• Attorney, accounting or clerical costs necessary to produce or collect taxable income
• Charges for automatic investment services and dividend reinvestment plans
• Costs to replace lost security certificates

Investment-related expenses that can't be deducted include:

• Trading commissions—these are "capitalized" to increase your cost basis and/or reduce your taxable sales proceeds

• Costs of traveling to attend a shareholder’s meeting

• Investment advisory fees related to tax-exempt income—you generally need to prorate these fees based on the portion of tax-exempt investment income versus total taxable investment

Miscellaneous itemized deductions are generally limited to the amount of expenses over and above 2% of your adjusted gross income (AGI). In other words, there’s a floor below which you lose the ability to deduct.