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    ray14's Avatar
    ray14 Posts: 1, Reputation: 1
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    #1

    Feb 15, 2010, 08:04 AM
    Cashing in a 401k
    At 60 I cash out a small ira I had from a rollover - I used this to pay off a second mortgage- I did not make any money in the ira because of the downturn in the economy'
    I know I have to pay taxes on the amount I took out.
    Are the any fees from the broker I have had this account with for over five years- that I can deduct against this amount..
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Feb 15, 2010, 08:09 AM

    No, you can not deduct fees that are inside the IRA. You pay income taxes on the difference between what you withdrew and the after-tax amount of your contributions. Since this IRA was funded from a 401(k) rollover, it's most likely that the full amount of the withdrawal is taxable as ordinary income.

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