Existing AMRF

[johnfenit]

Hello, a friend of mine has an AMRF worth c€25,000 and a pension of €12,400. He doesn't currently withdraw the 4% per annum as he's ok for funds.

In October this year, his pension will increase to €12,800 so my query is, will his AMRF become an ARF?

Also, will he be forced to take 4% withdrawal even though fund is below €63,500?

Thanks

john

 

[Gordon Gekko]

Yes

 

[LDFerguson]

In October this year, his pension will increase to €12,800 so my query is, will his AMRF become an ARF?

That's what should happen. Someone will need to tell the AMRF provider.

Also, will he be forced to take 4% withdrawal even though fund is below €63,500?

Only if he's 61 or older.

If I'm being pedantic, he's not forced to take the 4% withdrawal. He can choose to refuse it, but that would be inadvisable as the ARF provider will then deduct and remit tax on a notional 4%, but he'll still be taxed when he eventually does withdraw the money. So it would be a form of double taxation.

 

[Steven Barrett]

That's what should happen. Someone will need to tell the AMRF provider.

Not telling the provider, you run the the risk of the Revenue viewing it as sheltering income from income tax. It wouldn't take the Revenue that long to do a cross reference of AMRF policy holders with any life company with income returns.

Hello, a friend of mine has an AMRF worth c€25,000 and a pension of €12,400. He doesn't currently withdraw the 4% per annum as he's ok for funds.

In October this year, his pension will increase to €12,800 so my query is, will his AMRF become an ARF?

Also, will he be forced to take 4% withdrawal even though fund is below €63,500?

Thanks

john

€63,500 refers to the maximum amount that can be put into an AMRF. Otherwise, that number has no relevance. In this situation, the AMRF will become an ARF anyway.


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

 

[johnfenit]

thanks you for the responses, much appreciated

john