ARF Deemed Distribution

D

Deauville

Registered User
Messages
148
I'm curious as to how deemed distribution applies to an ARF in the first year.

Deemed distribution for ARF holder 65 years less than €2m.
Deemed distribution based on value of ARF assets on November 30th.

If I were to start an ARF in June 2024,
what year does the 4% deemed distribution in November apply to ? 2024 or 2025 ?

Many thanks in advance of any informed insights.
 
Assuming you haven’t drawn down any income in period up to Nov, then the ARF provider will distribute 4% of the Fund value at the end of Nov (and deduct Income tax etc from the gross drawdown ). And that will be repeated each year thereafter, but the minimum drawdown goes to 5% from the year you turn age 71.
 
Last edited:
Many thanks Conan. I appreciate the info.
I suppose it could be worse. I could be retiring in October and hit with marginal rate on 4% of fund.
 
You could always retire but defer taking your retirement benefits to January 2024 or even beyond that if you don’t need the money.
 
If an ARF is in place on or before 30 November, imputed distribution applies in that year. If the ARF is implemented in December of that year, no imputed distribution applies in that year.
 
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