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Subject:  Re: Coverdell documentation Date:  12/4/2012  2:41 PM
Author:  TwoCybers Number:  117068 of 132471

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.

Obviously you nobody on your 1040 gets medicare, this is not an issue.

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