I received an invoice from Provident or IRA Plus Southwest for a maintenance fee on an IRA account, do I need to pay that bill?
Though your claims against the Retirement Value estate are currently in your IRA, your relationship with the IRA’s custodian — is outside of the receivership. The fee you reference is the company’s annual fee to act as the IRA custodian. Failure to maintain a custodian may result in the dissolution of your IRA. If your IRA is dissolved, then the IRS may deem that to be a distribution which may have adverse tax consequences for you. Quite simply, I do not know if the custodian will waive the fee, if you can substitute a custodian, or if you can otherwise maintain the IRA without paying the fee. Moreover, I cannot provide you (or, for that matter, any of the investors) with tax advice. Accordingly, I encourage you to consult with a tax professional of your choosing. The Internal Revenue Service provides information and answers to common questions on its website. For your convenience, here is a link http://www.irs.gov/retirement/article/0,,id=111413,00.html to a page from IRS.gov dealing
Related Questions
- How should a registrant account for a fee received for installation of an additional telephone jack in the following situation?
- I have a 401(k) account with my former employer. Can I transfer the funds to a Self-Directed IRA with IRA Plus Southwest?
- How can I pay for my monthly maintenance fee if I do not have money in my ewallet account?
