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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Stan Michael who wrote (2408)	11/19/1999 1:17:00 PM
From: Kaye Thomas	Read Replies (2) \| Respond to of 5810

The language quoted is incorrect. Hard for me to believe Joseph Anthony perpetrated that remark; must have been his evil twin, Anthony Joseph. Commissions on stock trades in an IRA are considered an expense of the IRA. You are not treated as taking a withdrawal when you pay those commissions from IRA funds. On the contrary, if you pay the commissions from non-IRA funds you are deemed to have made a contribution to the IRA. If you've previously hit your maximum for contributions, the result is an excess contribution, which entails a penalty. The author of that comment may have been thinking of the rule for account maintenance fees. Those fees can be paid with funds from outside the IRA. (By logical extension, it would seem that you have a distribution if you pay them from fees within the IRA, but I don't recall hearing that this would be the case.) Kaye Thomas, author Fairmark Press Tax Guide for Investors fairmark.com