ARFs and AMRFs
Approved Minimum Retirement Fund (AMRF)
Approved Retirement Funds (ARFs) and Approved Minimum Retirement Funds (AMRFs) were created by recent legislation to broaden the investment options available on retirement.
They enable you to retain full ownership and control of your accumulated pension assets at retirement and they may be passed on after death as part of your estate.
An Approved Retirement Fund (ARF)is a personal investment fund provided by an investment manager or insurance company.
You can make withdrawals at any time. Growth within the fund is tax free although withdrawals from the fund are subject to income tax.
Unlike an annuity you maintain ownership over the assets and can bequeath them in your will. However, withdrawals from the fund are not guaranteed for life. The potential amount available depends on the size of the fund and the return achieved.
An AMRF is a similar structure to an ARF the only difference is you are only entitled to make withdrawls on the investment interest gained on the initial €63,500 to an ARMF. The initial €63,500 must be retained until age 75 at which point the AMRF becomes an ARF.
Approved Retirement Funds (ARFS)
You may be eligible to invest in an ARF if you are:
- Self-employed.
- >5% Proprietary Director.
- Making additional voluntary contributions to an occupational pension scheme.
- In non-pensionable employment.
- You have €12,700 at retirement.
You must have €12,700 secure income to avail of the ARF.
All pensions and annuities, including Social Welfare pension can be added together for this purpose. If not you must invest €63,500 from your retirement fund into a AMRF.
- Tax free growth.
- Tax on withdrawals
PRSAs | Group Pension Schemes | Additional Voluntary Contributions (AVC) | Personal Retirement Bonds | ARFs and AMRFs
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