ARF drawdown date

Yes
The requirement is simply that you draw down a minimum of 4% of the value by the year-end.
 
Daddy Ireland said:
Thanks. So I am 60 in August 2018 so I must draw down 4% by 31st Decmber 2018. Is that correct ?
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No, that’s not correct.

The mandatory drawdown doesn’t kick in until 2019 when you turn 61.

That’s not to say that you can’t withdraw money now; you can do that at any time but this year you’re not forced to.
 
Am I correct in saying
1/it must be drawn down in addition to pension?
2/ That you pay tax at marginal rate
What is max you can draw down ?
 
The 4% is simply part of Revenue regulations.
So an ARF holder must draw down a minimum of 4% p.a. from the fund (once they turn 61). This is designed to be the “pension income”.
Any such income drawdown is part of your overall income and as such is taxed in the normal way.
You can draw down as much income from the ARF as you wish, but obviously any such drawdown is liable to tax.
 
You have to be age 60 for the entire year, so unless you are born on 1 January, the deemed distribution doesn't kick in until you are 61. You then have to draw down 4% of the fund value as at 31 December of that year. The Revenue have given the QFM (Qualified Fund Manager) a bit of slack and let them use a valuation anytime in December.
When you are 70, that 4% increases to 5%.

Of course, you do not have to withdraw the funds. If you do not, the Revenue will take what they are due in tax on that 4% value directly out of your ARF. I have no clients who have ever done this.

There is no obligation to take any money out of the AMRF. If you wish, you can take 4% out each year.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
As I understand the position, where an ARF owner reaches 61 years of age or over during the relevant tax year, an imputed distribution is calculated as a percentage of the market value of assets in the ARF on 31 December each year.

The imputed distribution is currently 4% from 61 to 70 and rises to 5% where the ARF owner reaches 71 years of age.

The imputed distribution at all ages over 60 is 6% for those with ARF assets and vested PRSAs worth over €2 million.

Income tax, etc., is levied on imputed distribution as if it had been actually drawn down.

Actual distributions made during the year may be deducted from the "imputed distribution" to arrive at a "net" imputed distribution (if any).
 
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