24th February 2015 – Finance Bill 2015 – Changes to AMRF/ARF

Finance Bill 2015 – changes to AMRF and ARF

The following changes were recently introduced for AMRF and ARF holders

AMRF – New withdrawal facility

From 2015 onwards, AMRF holders will be able to withdraw annually up to a maximum of 4% of the value of their AMRF on the 1st February in that year. Such withdrawals are subject to PAYE and USC. AMRF holders are not obliged to make the withdrawal. This is optional.

ARF – Imputed Distribution

The ARF imputed distribution rate of 5% is being reduced to 4% for ARF holders under age 71. For those ARF holders, age 71 and older, the imputed distribution of 5% remains in place. For ARF holders whose total fund is in excess of 2 million, they remain subject to a rate of 6%.

ARF holders under age 71 have the option of maintaining the imputed distribution rate at 5%. The reduction to 4% is optional. Life companies are handling this in different ways. Some are automatically reducing the income to 4% while others are keeping at 5% and leaving it up to the ARF holder to instruct them to reduce the rate. We will be contacting clients on an individual basis with regards to this.

Budget 2015 -Pension Levy

With regards to the pension levy, this is being reduced to .15 % in 2015 and will expire at the end of 2015.