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Completely agree not a huge issue. I just learned the hard way. A $20k added amount to income tax return likely will only be a $2400 Fed bill, but will also bump their Provisional income by $20k & possibly cause $10k or $17k of their SS to now be taxable at 12% or more, state income taxes & in some cases make their medicare premiums go up in a year or 2 when IRS-Medicare gets around to recalculating. So, that 20k distribution could turn into an actual total of $6000-$7000 even if 12% fed bracket between fed, state, SS taxation, Medicare premium.
Still better than nothing, but LTC or hybrid would have been more ideal in hindsight in the situations I dealt with.
At least with a charitable donation over age 70, the IRA custodian can send the check directly to the charity so no 1099 gets issued at all.. Wish that were the case with Medical bills & Nursing home costs too from IRA-NQ Annuity/MEC
Not at all.
