ARF set up

[freewheeler]

Any advice re the first obligatory drawdown of 4% or %5 by revenue, if anyone knowledgeable on this point
If ARF set up this month. Can first drawdown of 5% be allowed by revenue to be taken in 2023 tax year.

 

[Steven Barrett]

The cut off valuation date is 30 November, so if the ARF is set up before then, it is subject to imputed distribution. That is 4% from age 61 - 70 and 5% from 71 onwards. Of course, you don't have to take it but the Revenue will take what they are due in tax anyway. If you take this course of action, you want to check with the life company before you set up the ARF as some providers will only pay out the full 4% to the policyholder.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)