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In 2002, I rolled a former employer's 401(k) into fee-based, managed IRA accounts. Since 2003 there was a market downturn and that the wrap fees were accelerating the loss in account value. I switched to direct payment of the fees.

Initially, there was a nominal tax advantage to paying the fees directly; however, the value of the IRA accounts have quadrupled. The fees, now, provide a substantial tax benefit. It is my only significant deduction.

I just retired. In 2015, I will start the IRS' Required Minimum Distributions from the accounts. This leads to two questions.

(1) Should I continue paying the fees directly as they reduce my taxable income?

(2) At what point would it be better to have the fees paid from the IRA accounts?

This gives rise to another question. Is there any financial or tax planning software available that would help answer the above questions?
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