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Author: Ondes Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: The Roth IRA, commissions and fees Date: 4/6/2000 3:30 PM
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Rather than having fees or commissions deducted from Roth IRA contributions, I want those amounts billed separately. It's backwards from what should be done on a taxable account, but in a tax free situation, where contributions are limited, allowing these expenses to reduce what could continue to be invested tax free is definitely unfoolish.

After reading Publication 590 and pouring through every resource on the web I could find, I finally had to consult with a tax professional to get any answers.

What I found out is that having commissions and fees billed separately is perfectly legit (and quite foolish), but it's just not a standard feature in the software most brokers use for all their paperwork, and most will try to pretend it can't be done.

Any ideas on a what brokers will bill fees and commissions separately, rather than deducting them from the account?
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20995 of 75335
Subject: Re: The Roth IRA, commissions and fees Date: 4/6/2000 3:51 PM
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Greetings, Ondes, and welcome. You asked:

<<What I found out is that having commissions and fees billed separately is perfectly legit (and quite foolish), but it's just not a standard feature in the software most brokers use for all their paperwork, and most will try to pretend it can't be done.

Any ideas on a what brokers will bill fees and commissions separately, rather than deducting them from the account?>>


Sure, and the answer is none. Contrary to what you have been erroneously told, trading fees (i.e., commissions) cannot be paid for with money that comes from outside the IRA UNLESS you want to have that payment count as part of that year's annual contribution limit to the IRA. You may pay for the annual administration/maintenance fee separately, but not the trading fees. If your custodian charges such a fee, then most will accept your personal check for that instead of deducting the charge from your account.

Regards..Pixy

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Author: Chipsboss Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20999 of 75335
Subject: Re: The Roth IRA, commissions and fees Date: 4/6/2000 6:44 PM
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http://www.irs.ustreas.gov/forms_pubs/pubs/p5900104.htm
says

"Brokers' commissions. Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit and are not deductible as a miscellaneous deduction on Schedule A (Form 1040)."

Chips, who sometimes quotes without comment

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