Approved (Minimum) Retirement Fund – A(M)RF

Approved Retirement Fund (ARF)

An Approved Retirement Fund (ARF) is a post-retirement investment plan that allows you retain total control of your pension fund following retirement. The ARF may be left to accumulate growth, may be used to draw down a regular income or may be wholly encashed. Any withdrawals from an ARF are subject to PAYE and USC. Any money remaining in the fund after your death can be left to your next of kin. You are required to take a compulsory drawdown (imputed distribution) from your ARF of 4% per annum, if attained age is 61 or over in the tax year. This increases to 5%, per annum, if attained age is 71 or over in the tax year.

The imputed distribution rises to 6%, (if attained age is 61 or over in the tax year) in respect of ARF’s with asset values in excess of €2 million.

Approved Minimum Retirement Fund (AMRF)

An Approved Minimum Retirement Fund (AMRF) is similar to an ARF. If you have less than €12,700 guaranteed income in retirement, you will have to invest the first €63,500 of your retirement fund in an AMRF (or buy an annuity) before you can invest in an ARF.

AMRF holders can opt to take one withdrawal in a year up to a maximum of 4% of the value of the AMRF at the time of withdrawal. Any withdrawals from an AMRF are subject to PAYE and USC.

At age 75, the AMRF converts to an ARF and the fund can then be withdrawn as you wish.

You can use your ARF and/or AMRF to buy an annuity at any time.