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.
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.
€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)