On the 9th of February in the ‘Talking Money’ segment of RTE 1 Drivetime show Mary Wilson had us in to discuss some changes that were coming down the line in the UK for the over 55’s regarding their pensions. This will have an effect on thousands of Irish people and we considered that as well as whether or not the move was a good idea or not.
The recent budget increased the imputed distribution for all ARFs to 5% for any ARF funds in place at on the 31st of December2010.So for this current year the distribution for 2010 is deemed to be 5% (whether you have taken it or not).
What should you do if you have an ARF?
Many life companies have ensured that the 3% distribution (the required amount to date) had been organised for year end irrespective of client actions except where this has already been done by the ARF owner in order to make sure people are compliant.
Now they are going to have to distribute a further 2% – if your life provider is not in touch by the end of this week to inform you of this then call them and find out what is happening. It must happen within the next 10 working days to ensure that the 5% distribution for 2010 is met.
Why not just pay the tax due on the additional 2% and leave the money in the fund?
Doing this means you …