What are the rules for deducting management fees in a 401k IRA?

Forum|Forum|6 years ago
June 1, 2019
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DavidD66

There is no deduction for management fees paid inside a 401(k). The funds in the account that are used to pay the fees are pre-tax. Since you didn't pay tax on them, there is no deduction. IRA fees are similar. If you pay the fee with after tax dollars, you can claim a deduction on Schedule A (subject to some limitations). If the fees are paid from within the IRA, they are not deductible.

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trapezewdc

Employee

Quick questions.

I have two 401K accounts from my previous employers. These two accounts are not rolled over to anywhere else and still untouched. Since I am no longer employed by either company, the management fees should be all paid for using the funds in these accounts.

Can I deduct the management fees since my previous employers are not paying them for me ? Thanks.

KrisD15

No, as previously stated, deductions are subtractions from taxable income. Since the dollars in a 401(k) plan were never taxed, you can't deduct the fees that were paid by these pre-tax dollars.

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