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Does investment fee's charged by 401K by vanguard or other website be considered as "Investment Advisor Fees" ?

Forum|Forum|5 years ago
July 7, 2020
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I am using financial advisors to manage my investment account does the fees incurred for that is considered as "Investment Advisor Fees" ?

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Best answer by Opus 17

If the fees are being deducted from the 401(k) assets, then no. The whole point of a 401(k) is that you deposit money tax-free and pay tax on whatever you withdraw, no matter how much or how little. Paying fees just means you will withdraw less when you retire and pay less tax then.

If you pay out of pocket, the miscellaneous deduction for investment fees was eliminated in the 2017 tax reform.

O

Opus 17Answer

Employee

If the fees are being deducted from the 401(k) assets, then no. The whole point of a 401(k) is that you deposit money tax-free and pay tax on whatever you withdraw, no matter how much or how little. Paying fees just means you will withdraw less when you retire and pay less tax then.

If you pay out of pocket, the miscellaneous deduction for investment fees was eliminated in the 2017 tax reform.