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Subject:  Re: Coverdell documentation Date:  12/4/2012  9:28 PM
Author:  irasmilo Number:  117070 of 127549

Mr Goofy I urge you to be very careful here for Un-intended consequences. My wife and I handle affairs for a friend who had a stroke. Our friend decided to donate funds from her traditional IRA to a charity. All the official Schwab forms were filled out. Check when directly from Schwab to charity. Schwab checked a box saying 'tax liability not determined' on the IRA's 1099. Tax accountant handled this just like a normal IRA distribution and listed the funds as a donation. So no Federal income tax. But those funds were listed in the AGI line. That lead to the MAGI for Part-B purposes being increased.

Sounds like the accountant made a mistake and should amend the return. Then you could argue with SSA about the Medicare Part B rate.

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