A Self Administered ARF allows you to take control over where these funds are invested. It lets you place some, or all, of your pension fund value, depending on your preference, in a wide range of investments. These could be deposit accounts, a share portfolio, a tenanted property, an investment in a managed fund, or a combination of any or all of these. You are then free to draw a regular income from the fund if you so choose.
A self administered ARF gives a variety of benefits to you in retirement including:
You are required by the Revenue Commissioners to take a minimum distribution from your ARF annually once you are aged 61 years.
The minimum annual distributions are:
If you do not take a distribution in any given tax year there will be a tax bill due from your ARF. This is remitted in February of the following year for the imputed tax due on 4% / 5% / 6% of your ARF and based on the value as at the preceding 30th of November.
On your death your ARF can be transferred to your spouse / civil partner tax-free who can continue to manage the ARF investments and take withdrawals.
Alternatively your ARF can be left to your children or other persons subject to income and / or inheritance tax which are summarised below.
|ARF Inherited by……||Income Tax Due||Capital Acquisitions
|Surviving Spouse||None, where transferred into an ARF of surviving spouse.
Yes, if not transferred to ARF to survivor’s spouse. This will be treated as a taxable distribution by the deceased in the year of his/her death.
|Child aged 21+ at date of death||Yes. Income Tax at rate of 30%||None|
|Child aged less than 21 at date of death||None||Yes, normal inheritance tax rules apply.|
(not surviving spouse or children)
|Yes. This will be treated as a taxable distribution by the deceased in year of his/her death.||Yes, normal inheritance tax rules apply.|
The Harvest ARF may be suitable for you if you: