Fidelity® Portfolio Advisory Services | Service Tip
In an ever-changing economic environment, we want to reach out and help you navigate some recent legislative changes. We know some of our clients pay their advisory fee by check or deduct the fee from a taxable account for the purpose of a miscellaneous tax deduction. The recently passed Tax Cuts and Jobs Act brings forth a wide variety of changes to the US tax code, including eliminating the itemized deduction for advisory fees for the 2018 tax year.
There is no change for those filing 2017 taxes, as investment expenses, like your advisory fees, are deductible as a "miscellaneous itemized deduction" if they exceed 2% of your adjusted gross income (AGI).
If you were paying your advisory fee by check or deducting the advisory fee from an alternate account, you may want to consider having your advisory fee debited directly from your managed account. Any questions about how this change may impact your personal tax situation should be directed to a tax professional.
We make it easy to deduct your quarterly fee directly from your managed account or another Fidelity account. The fee will be included in your account statement, allowing for a consolidated view into all of your managed account activity.
If you have any questions for how to change the way you pay your advisory fee—or anything else pertaining to your managed account—please visit us online or call us directly at 800-544-3455.
As always, we are here to help you achieve your financial goals. Thank you for being a client.