As I understand the position, where an ARF owner reaches 61 years of age or over during the relevant tax year, an imputed distribution is calculated as a percentage of the market value of assets in the ARF on 31 December each year.
The imputed distribution is currently 4% from 61 to 70 and rises to 5% where the ARF owner reaches 71 years of age.
The imputed distribution at all ages over 60 is 6% for those with ARF assets and vested PRSAs worth over €2 million.
Income tax, etc., is levied on imputed distribution as if it had been actually drawn down.
Actual distributions made during the year may be deducted from the "imputed distribution" to arrive at a "net" imputed distribution (if any).