Re: Account Fees

From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Account Fees
Date: Thu, 5 Nov 1998 18:29:13 -0500

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>Hello everyone,
>If my mutual fund company takes their annual IRA maintenance fee out of my
>account, (instead of me paying it with a separate check) does that reduce
>the amount I can contribute?

Yes.

>For example:  Say I've sent them $1000 so far this year for my IRA
>contribution.  If they take the $10 fee out now, can I send them $1010 more
>(since my contribution is reduced to $990),

No.

>or only $1000 more?

Yes.

To not count as part of the contribution, the annual fee needs to
be separately billed and paid from outside the IRA.  In addition,
if this is done, the fee is a deductible expense, subject to the
2% of AGI floor on miscellaneous deductions.

Rich Carreiro
rlcarr@animato.pn.com
P5-100/RedHat Linux 4.1

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