IRA Fees - What type of distribution

Hello,

We are going to start charging a small annual fee (fixed fee) on our IRAs on 12/31. For those who charge fees, what category on the IRS form do you use? I am thinking it would be the "transfer" option but I wanted to check with the rest of you.

Thanks,

Hello Phil,

Fees charged directly to an IRA should not be coded as reportable distributions on a 1099-R. Your system should have a way to code the transaction as a non-reportable fee.

This fee was reflected in the financial projections you gave at account opening, correct? This isn't simply a TISA issue; your fees should have been disclosed at inception.