Management Fees

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L1: Management FeesCan management fees that are associated with a SEPP IRA be deducted directly from the IRA account or must they be paid with monies outside of the IRA?ThanksJoe2010-01-19 21:42, By: Joe, IP: [24.5.252.89]
L2: Management FeesShort answer is it’s your call because you have your choice. If they are paid from the IRA, the amounts do not show up as a distribution and do not affect your SEPP. If paid from outside funds, it also has no effect on your SEPP but you might qualify for a misc itemized deduction on Sch A if you itemize. This is technically true if you have a WRAP account where all the fees including the commissions are based on a % of account balance per IRS letter ruling 2005-07021.However, if this is an advisory fee only and not a WRAP fee, make totally sure that the fee does not cover any accounts other than your SEPP IRA account. Otherwise there is a very small risk that the IRS could rule the IRA payment as a distribution. With a SEPP I would not be inclined to take a chance because the cost of an error is so great. 2010-01-19 22:19, By: Alan S., IP: [24.116.165.60]