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Disagrees With Tax Planning Tip

BY COOK

Please note: This item is from our archives and was published in 2000. It is provided for historical reference. The content may be out of date and links may no longer function.

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I do not agree with the recommendation to pay IRA fees out of separate funds stated in “Tax Planning Tips for 2000 and Beyond,” ( JofA, Nov.99, page 10). What percentage of taxpayers gets any tax benefit from miscellaneous deductions subject to the 2% rule?

If the fee is paid out of IRA funds, you do lose the tax deferred earnings on the fee, but you get a tax deduction (in effect) since the taxable income will be less upon withdrawal.

William A. Cook, Jr.
Roanoke, Virginia