4% ARF Drawdown

My wife set up an ARF from her pension fund last year and made a small withdrawal (more than 4%) from it.

As she is under sixty my understanding is that as the assumed withdrawal of 4% by Revenue doesn't apply (until she reaches 60) she does not need to make a drawdown this year and having received some funds from an inheritance earlier this year there is no pressing financial reason for her to have to do so either.

Is there anything that I'm missing that would suggest that she should withdraw a minimum of 4% before year end?

Nope...unless she wants to draw down €5K to keep her PRSI stamps ticking over for the state contributory pension

LL???? said:

Is there anything that I'm missing that would suggest that she should withdraw a minimum of 4% before year end?

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Maybe draw enough to take it tax free based on her tax credits that may otherwise go unused?

I believe she's OK to leave it alone until the tax year in which she turns age 61.

If she has no other income this year she would miss out on the opportunity to use her earned income credits. These cannot be transferred to you, so they would go to waste if she cannot use them.

Flybytheseat said:

Nope...unless she wants to draw down €5K to keep her PRSI stamps ticking over for the state contributory pension

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I believe you can pay prsi voluntarily even if no earnings. Highly advisable.