Expert Q&A

The IRS recently released a Private Letter Ruling (PLR) allowing a certain taxpayer to include his/her IRA “Wrap fees” paid to the investment company as part of the Schedule A investment fees deduction. Unsure if the PLR specified Roth or Traditional IRA.

Usually, -yes. However, do check with your tax advisor.

Maybe. If paid from a taxable account the fees will flow on to your Schedule A along with other itemized deductions. Each person’s tax situation is very different and you will have to check with your CPA to understand if there are tax benefits.

If the fees are paid out of a taxable account (not an IRA) then the fees can be tax deductible.