IRA Tax Questions

Are IRA management fees tax-deductible?

It depends. If you own a traditional IRA and pay the fees out of pocket, you can claim them on Schedule A as a miscellaneous itemized expense to the extent all qualified costs exceed 2% of AGI.  You can’t write off fees charged directly to the IRA. Roth IRAs are more complicated. The prevailing view is that Roth fees aren’t deductible because they’re incurred to produce tax-free income, whether the fees are paid with outside funds or deducted directly from the account.
 
Since I converted my traditional IRA to a Roth last year, the account lost value.  Can I now undo the switch and trim my tax bill? Yes. You have until Oct. 17 to unwind it. If you do so before filing your return, then you’ll avoid paying a tax bill.  If you’ve already filed for 2015 and paid the tax, use Form 1040X to request a refund.  Contact your IRA administrator for the steps needed to recharacterize the conversion.
 
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