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What is the five percent payout requirement? The basic rule can be stated simply, but its calculation is complex: This rule mandates private foundations distribute 5% of their asset value annually for charitable purposes. Each year every private foundation must make eligible charitable. Each year, every private foundation must make eligible charitable expenditures that equal or exceed. As a general rule, a private foundation should make a charitable “payout”—in grants and qualifying operating expenses (explained. There were complications and ambiguities, but in 1976 the “five percent payout requirement” was set in stone. Over the years, private foundations have. View the rrif minimum payout percentages for different ages, with the annual percentage payouts gradually increase to age 95. What is the 5% payout rule?
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