Approved Retirement Funds

For those taking the proceeds of their Personal Pension, PRSA and Directors who control at least 5% voting rights in the company, up to 25% of the accumulated fund may be taken as tax free cash and the balance may be invested in an ARF. This is subject to meeting either of the following requirements:

1. The individual at retirement must have a guaranteed income for life of at least €12,700.00 per annum or;
2. From their lump sum, must have invested €63,500.00 in an Approved (Minimum) Retirement Fund. This A(M)RF cannot normally be drawn on until age 75 at which stage it becomes an ARF.

The advantage of an ARF is that you can draw from this as and when you wish various amounts. Only when the money is withdrawn will an income tax liability arise (unless exempt). You have control over fund choice and no tax is deducted within the ARF and A(M)RF.