Cian, aged 68, has an AMRF valued at €63,500 as of 30 November 2020. He has not withdrawn from the AMRF in 2020 and has no ARFs or vested PRSAs. What imputed distribution amount, if any, will apply to Cian's AMRF for 2020 if he takes no withdrawal from it in 2020?

Cian, aged 68, has an AMRF valued at €63,500 as of 30 November 2020. He has not withdrawn from the AMRF in 2020 and has no ARFs or vested PRSAs. What imputed distribution amount, if any, will apply to Cian's AMRF for 2020 if he takes no withdrawal from it in 2020?

• A. Nil
• B. €2,540
• C. €3,175
• D. €3,810

Answer: (A)

Imputed distribution is a notional withdrawal for tax purposes that applies only when there is a withdrawal or deemed withdrawal from an AMRF/ARF in a given year. If you take no actual withdrawal in that year, there is no imputed distribution to report. In this case, Cian did not withdraw from his AMRF in 2020 (and has no ARFs or vested PRSAs), so there is no notional withdrawal to tax in 2020. The figures that correspond to 4%, 5%, or 6% of the €63,500 fund would only come into play if there were a deemed withdrawal, which there isn’t here. Hence, the imputed distribution for 2020 is nil.

Imputed distribution is a notional withdrawal for tax purposes that applies only when there is a withdrawal or deemed withdrawal from an AMRF/ARF in a given year. If you take no actual withdrawal in that year, there is no imputed distribution to report.

In this case, Cian did not withdraw from his AMRF in 2020 (and has no ARFs or vested PRSAs), so there is no notional withdrawal to tax in 2020. The figures that correspond to 4%, 5%, or 6% of the €63,500 fund would only come into play if there were a deemed withdrawal, which there isn’t here. Hence, the imputed distribution for 2020 is nil.