I am sure that during your investing endeavors, you will come across a situation where some qualified input from a tax professional might be of tremendous help. Or, maybe you just like a second opinion?
One of my newsletter readers, a former corporate CPA, has offered to answer any questions you may have in that area. His blog contains a wealth of information and, if you are in need of assistance, feel free to post a question in the comment section of his blog:
http://wwwtaxman.blogspot.com/
I hope you find this useful.
Comments 4
I received a comment from one of your readers about IRA required minimum distributions if you have more than one IRA account.
That kind of question comes up frequently. You can add them all and take the distribution from just one if you want to.
That’s great advice. Thanks for sharing it.
I too am a long time reader of ULLI’s and have a question for TAXXCPA:
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My question pertains to the deductibility of INVESTMENT MANAGEMENT FEES, PAID TO AN OUTSIDE INVESTMENT ADVISOR (like Ulli) WHO MANAGES THE ASSETS IN A TAX DEFERRED ACCT like an IRA or Variable Annuity. The fees paid to the investment advisor are substantial, (for instance, on a $400K IRA or Variable Annuity, the 1% management fee would be $4,000 per year). These fees paid are paid to the investment advisor directly (out of pocket) and are NOT deducted from the tax deferred account (because for IRA and Var Annuity one cannot withdraw funds prior to age 59 1/2 without penalty).
I would like to know specifically if the INVESTMENT MANAGEMENT FEES, PAID TO AN OUTSIDE INVESTMENT ADVISOR WHO MANAGES THE ASSETS (not the IRA trustee) on a TAX DEFERRED ACCOUNT, SUCH AS AN IRA or a VARIABLE ANNUITY, are deductible.
That is my question.
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Thanks in advance for any consideration and sharing of ideas.
I tried asking the IRS this question on their help line and was shuffled around, never receiving a specific answer. Regards, Jim
Jim,
I have clients whose 401k/Annuity I manage. They pay my management fee separately and apply the deduction on their tax return. As long as they itemize, it can be deducted, although I can’t quote you the schedule it is listed on.
I’m sure we’ll have a comment from the CPA as well.