Last month the IRS released Private Letter Ruling 200507021. Ah, I see your collective eyes glazing over. Hang in there, this could save you a chunk of change.

In a nutshell, the ruling says asset based fees incurred in connection with an IRA can be paid with money outside of the IRA. This includes "wrap" fees that cover everything from transaction costs, annual fees and rep fees. This payment is not viewed as a contribution to the IRA itself. Big deal? You bet. If you have a $500,000 IRA and pay a 1% fee with outside money, you effectively keep an extra $5000 in the tax advantaged account to work the magic of compounding. Furthermore, you can claim an itemized deduction on the fee subject to certain limitations.

The crux of the ruling is that the fee must be "based on a fee structure calculated as a percentage of the value of the assets held in the respective account and the fees do not vary with the frequency of the transactions performed and are distinct from the cost or volume of any assets purchased for sold." It seems the odd man out is the old school stock broker who works strictly on commission.

So what should you do? First, consult your tax advisor. Second, if you work with a financial advisor discuss this with her and see if your IRA accounts are being billed optimally for your tax situation. And if you work with a stock broker, ask him if his firm offers a pricing alternative that falls under some sort of asset based program. In the last situation, be sure your activity level warrants the switch. If you have minimal trading commissions to begin with you're probably better off staying put.

Finally, a note of caution on private letter rulings. The IRS issues them for the sole benefit of the person requesting the ruling. No one else can rely on them for any sort of precedent. That said, the rulings do shed light on how the IRS views certain tax situations.

With that let me remind you - 25 days until April 15. If you're owed money and haven't filed yet do so at once. Don't let the uncle have fun on your dime.