Q. I am going to let a financial advisor manage my IRA money and he charges 1% fee. Will that fee be deducted from the IRA balance? Will it be treated as a distribution and leads to penalty since I am young than 59.5?
A. You can deduct the 1% Asset Management fee from IRA, it will be treated as an expense of IRA rather than a distribution, therefore there is no tax implication.
However, the best strategy is to pay the fee outside of IRA, so your retirement money can grow tax-deferred or tax-free if it's Roth IRA.
A. You can deduct the 1% Asset Management fee from IRA, it will be treated as an expense of IRA rather than a distribution, therefore there is no tax implication.
However, the best strategy is to pay the fee outside of IRA, so your retirement money can grow tax-deferred or tax-free if it's Roth IRA.
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