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Wildcat7
Feb 11, 2013, 11:33 AM
Quit my job and took another job... I rolled over my 401K but was charged a surrender fee... Can I take this surrender fee off on my taxes?

ebaines
Feb 11, 2013, 12:36 PM
In general the answer is no - asuming that the surrender charge was taken directly out of your 401(k) when you rolled it to the IRA. You cannot deduct the amount because it was taken from pre-tax contributions and earnings - this is money that was never taxed and so you can't take a deduction. However - on the off chance that you paid the fee from a separate source then it may be included as a miscellaneous deduction, and hence is decutible to the extent that the sum of all your misc deductions exceeds 2% of your adjusted gross income.