Approved Minimum Retirement Fund (AMRF)

Summary of AMRFs

Prior to investing in an Approved Retirement Fund (ARF) an individual must satisfy the AMRF requirement. Having taken up to 25% of the fund value as a tax free lump sum, the balance, or €119,800 if less, must be transferred to an AMRF or used to purchase an annuity. The AMRF requirement can be satisfied by splitting the €119,800. For example: Use €59,800 to purchase an annuity and place €60,000 in an AMRF.

Are there any exceptions to the AMRF rule?

There are currently (July 2011) two exceptions to the AMRF requirement. It does not apply:

1. If the individual is aged over 75.
2. If the individual has “specified income” of at least €18,000 per annum.

Therefore, the AMRF requirement applies whenever an individual has specified income of less than €18,000 per annum. There is no facility for apportionment. For example: An individual who has specified income of €5,000 must place €119,800 in an AMRF.

What rules apply to AMRFs?

• The initial capital invested in an AMRF cannot be withdrawn but any income or gains may be.
• All withdrawals from an AMRF are taxable.
• When an individual reaches age 75, or dies, the AMRF becomes an Approved Retirement Fund (ARF).
• Transfers may be made from one AMRF to another AMRF.
• An individual cannot have more than one AMRF.
• The AMRF requirements do not have to be satisfied for each contract. The overall maximum an individual must transfer to an AMRF is €119,800, regardless of the number of contracts held.
• An AMRF may not be used as security for a loan.
• AMRF funds may be used to purchase an annuity for the beneficial owner at any time.

Why Wexford Financial Services Ltd?

Wexford Financial Services Ltd. will:

• Compare the market for you to ensure you get the best deal for your AMRF.
• Compare the market and advise you on the investment fund(s) most suitable to your investor profile including secure capital investment options.
• Monitor your AMRF on a regular basis and provide you with a regular valuation on your plan.
• Advise you of any changes in Pensions Law or general tax law that may impact on you.