A qualified charitable distribution (QCD) is a direct distribution from your IRA custodian to a qualified 501(c)3 charity like the Oregon Right to Life Education Foundation (ORTLEF). QCDs from IRAs offer you tax benefits and help make our advocacy possible. As always, be sure to check with your financial or tax advisor for how this applies to your individual financial circumstances.
Here is a simple explanation of the process: Let’s say you’re older than 70.5 years old and in a 20 percent tax bracket. In most years, you must take $100 out of your IRA to meet the required minimum distributions. You also want to give $75 to ORTLEF.
If you take $100 from your IRA and transfer it directly into your bank account, it is taxed as income. The IRS will take $20. After you give $75 to ORTLEF, you will be left with just $5.
However, if you take advantage of a QCD, you would have your IRA custodian send $75 directly to ORTLEF. The remaining $25 would be sent to you, with the IRS taking 20 percent ($5). You would be left with $20, a savings to you of $15.
QCDs are a viable tax strategy and can help advance the pro-life cause in Oregon.