Paying IRA Investment Management Fees
New tax law brings big changes. But there are workarounds.
Are the money-management fees I pay for my IRA still tax-deductible under the new tax law? - G.R., Darien, Conn.
Investment management fees are no longer tax-deductible under the new law. But there is still a tax-advantaged way to pay these expenses: You can take money from your IRA to pay the fees without incurring taxes or early-withdrawal penalties. This can be a good strategy for a traditional IRA, but it doesn’t provide any extra break for a Roth IRA.
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As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
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