I am advised by Revenue that an individual who is under the age of 75 at the time of exercising the Approved Retirement Fund (ARF) option and does not meet the requirement in section 784C(4) Taxes Consolidation Act 1997 (TCA) of having a minimum guaranteed pension or annuity income for life of €12,700 per annum, is required under that section to set aside an amount of €63,500 from the pension fund (or the remainder of the fund, if less than €63,500 after taking a retirement lump sum) by investing the amount in an Approved Minimum Requirement Fund (AMRF) or by the purchase of an annuity.
A maximum of 4% of the AMRF value may be withdrawn annually and withdrawals are subject to tax. However, there are currently no other provisions within the legislation that provide for early withdrawal from this fund.
The Deputy provided details of a specific taxpayer in his correspondence and I can confirm that Revenue are now in contact with the taxpayer directly in relation to the matter.