Are advisor fees from an IRA account subject to federal income tax?

Forum|Forum|10 months ago
May 4, 2025
1 reply
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ask a cpa

xmasbaby0

Employee

You cannot deduct the advisor fees, if that is what you mean. Miscellaneous fees and expenses such as those have not been deductible on a federal tax return since 2017.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

bradmars52Author

My question is not if I can deduct advisor fees.

My question is when the advisor takes their fee from the IRA account, will this withdrawal from the account be treated as a distribution by the IRS requiring me to pay additional federal income taxes related to the total of all advisor fees taken from the account during the year.

I have seen conflicting results from online searches and I am wondering if you could share any links to IRS docuemnetation that clearly spells our if advisor fees are part of the reported gross income

VolvoGirl

Employee

No it shouldn’t be taxable. Transactions inside the IRA account are not reported. You shouldn’t get a 1099R for it. You only report distributions, rollovers or conversions you make.