Paying Advisor Fees from IRA

[gerntz]

This may have come up before, this may be well known by others & not need to be discussed, but for those of you, & us, who pay such fees, you can have them deducted/paid from your Traditional IRA directly, thus avoiding income taxes on the money used to pay the fees. I only recently thought to ask about this feature when such fees became non-itemizeable with the new tax law. Yes, sometimes even that deduction was lost when our Miscellaneous Deductions did not exceed 2% of AGI.

That's all.

 

[Gill]

This may have come up before, this may be well known by others & not need to be discussed, but for those of you, & us, who pay such fees, you can have them deducted/paid from your Traditional IRA directly, thus avoiding income taxes on the money used to pay the fees. I only recently thought to ask about this feature when such fees became non-itemizeable with the new tax law. Yes, sometimes even that deduction was lost when our Miscellaneous Deductions did not exceed 2% of AGI.

That's all.

Yes, but you're reducing your IRA unnecessarily by the amount of the fee.
Gill

 

[gerntz]

Yes, but you're reducing your IRA unnecessarily by the amount of the fee.
Gill

Well, if you believe it's right to have an advisor, why is it unnecessary to do what is right? Or, do you mean you could better fund your advisor fees elsewhere?

 

[Gill]

Well, if you believe it's right to have an advisor, why is it unnecessary to do what is right? Or, do you mean you could better fund your advisor fees elsewhere?

I mean the latter. If you must have an advisor, pay the fees with funds outside the IRA to avoid reducing The IRA account unnecessarily.
Gill

 

[gerntz]

I mean the latter. If you must have an advisor, pay the fees with funds outside the IRA to avoid reducing The IRA account unnecessarily.
Gill

Thanks.

However, after tax $ are more valuable than pre-tax, i.e., Trad, IRA ones, imo.

Example: If fees are $4K/yr, paying with post-tax $ costs me $4K. If my income tax rate is 25%, paying that same $4K costs me $3K as I never pay the income tax. It's no different than QCD's.

And I'd love to get all my IRA funds out without paying any income tax.