Once you hold an ARF, Revenue requires a minimum annual drawdown — currently 4% of the fund value for those under 70, rising to 5% for larger funds and those over 70. This imputed distribution is taxable regardless of whether you actually withdraw that amount. For ARF holders who do not need to draw the full imputed amount, this creates a tax liability on money they may have preferred to leave invested. PPFS helps ARF clients manage their annual drawdown strategy to minimise unnecessary tax, considering options such as structured investments, pension contributions from ARF income, and phased drawdown planning.
“Are you managing your ARF drawdown in a way that minimises your tax exposure?”
