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Financial Planning / Tax Strategies
|Subject: Re: Coverdell documentation||Date: 12/4/2012 10:08 PM|
|Author: TMFPMarti||Number: 117071 of 121341|
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.
A few questions.
1. Did your friend qualify to make a Qualified Charitable Distribution as described in Pub 590?
2. What code was in Box 7 of the 1099-R?
3. What did Schwab say when you inquired?
BTW, 1099-R's for IRA distributions are always supposed to be marked "taxable amount not determined."
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