Brendan Burgess
Founder
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What are the specific rules relating to ARF drawdown?
A friend of mine set up an ARF during 2010, I think. He took no drawdown.
1) Must the drawdown be taken in the first calendar year?
2)Is it pro-rated for the length of the year? For example, if it was set up on 1 July, is it 2.5%?
3)Can he do anything about it now?
4) How is it calculated? 5% of the initial amount in the year in which it is set up?
General questions for an ongoing ARF
5) If he was obliged to drawdown,say €10,000 but didn't, then he should declare €10,000 income on his tax return for 2010?
6) Presumably there is never any case for not drawing down 5%?
7) Do the ARF providers have systems in place to automatically pay the 5% before the year end or at least write to the ARF holder advising him to draw down the money?
A friend of mine set up an ARF during 2010, I think. He took no drawdown.
1) Must the drawdown be taken in the first calendar year?
2)Is it pro-rated for the length of the year? For example, if it was set up on 1 July, is it 2.5%?
3)Can he do anything about it now?
4) How is it calculated? 5% of the initial amount in the year in which it is set up?
General questions for an ongoing ARF
5) If he was obliged to drawdown,say €10,000 but didn't, then he should declare €10,000 income on his tax return for 2010?
6) Presumably there is never any case for not drawing down 5%?
7) Do the ARF providers have systems in place to automatically pay the 5% before the year end or at least write to the ARF holder advising him to draw down the money?