Here’s what you should know

Personal Finance

Here’s another idea: Revisit your investment fees now that you can’t deduct them.

Prior to the Tax Cuts and Jobs Act, you were allowed to deduct investment and custodial fees, trust administration fees and other expenses for managing investments that produce taxable income. Under the old law, you could claim this and other miscellaneous itemized deductions to the extent they exceeded 2 percent of your adjusted gross income.

Though you couldn’t take a deduction for traditional IRA fees that you paid directly from the account, under the old law you were able to use other assets to pay those expenses and then take the deduction.

Now, you should think twice: If your IRA is growing rapidly and you have a long time horizon, consider using outside money to pay the fees, said Jeffrey Levine, a CFP/CPA and CEO and director of financial planning at BluePrint Wealth Alliance.

This way, more of your IRA cash continues growing on a tax-deferred basis.

If your time horizon is shorter and you’re in conservative investments, it may make sense to deduct the fee directly from the IRA instead.

You can use taxable account dollars to pay your Roth IRA’s costs. This way, you leave your Roth IRA — a pot of tax-free retirement savings — to continue growing.

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