WRAP 1% Fee of IRA Account

[Parent of holy terrors]

A client has an account which he pays 1% of the value to have it managed.

It is an IRA. Can this be taken as a 2% item?

Does it change if the account is a taxable account?

Thanks.

[Gretel]

IRA fee

Can only be taken as a deduction if actually paid, not if the fee reduces the value of the account.

[Roberts]

Yeah, as was said except it's deductible if you write the check for the fee outside of the account. If the money is deducted from the IRA either through investments or through a deduction of balance, it isn't deductible. Lot of people will just write a check seperately for that sort of service but a lot of firms don't allow it on the 1% assets under management fee if it is paid through a mutual fund.