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I am going to rollover my 401k into a rollover IRA. When the transfer is complete, there will be x amount of dollars in the new Rollover IRA Account.

My plan is to invest in large companies that pay LARGE DIVIDENDS since the dividend income is tax deferred.

My question has nothing to do with that strategy.

The question is: When I make a trade, there is a broker fee. Where does this money come from? If it comes from the available balance, is this considered a withdraw? If not, is this considered a fee? What are the implications of fees? American Express charges a custodial fee even if you never make a trade. Others only charge for trades.
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When I make a trade, there is a broker fee. Where
does this money come from? If it comes from the available balance,is this considered a withdraw? If not, is this considered a fee? What are the mplications of fees? American Express charges a custodial fee even if you never make a trade. Others only charge for trades


Since the inception of my IRA annual account fees, commissions for stock transactions are paid from the account & considered expenses. They are not considered withdrawals. My credentials are only an old Fool who will watch others post an answer to your question. Be alert for some new twist which could save some money.
Luck Venny
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<< When I make a trade, there is a broker fee. Where does this money come from? >>

It must come from your existing IRA funds.

<< If it comes from the available balance, is this considered a withdraw? >>

No.

<< If not, is this considered a fee? >>

It really doesn't matter what you call it, the purchase and sale commissions are part of the price of the stock and must be paid from the IRA funds.

<< What are the implications of fees? American Express charges a custodial fee even if you never make a trade. Others only charge for trades. >>

If there is a maintenance fee not attributable to specific assets tax law allows you to pay that from non-IRA funds. (It is also a miscellaneous itemized deduction on Schedule A, subject to the 2% of AGI exclusion.) I will suggest, however, that you consider a custodian who doesn't charge maintenance fees. There are a lot of them out there.

TMF ExRO
Phil Marti
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