Taxes Consolidation Act 1997 section 787H

Approved retirement fund option

Section 787H allows the owner of a personal retirement savings account (PRSA) to opt to transfer the accumulated PRSA assets to an approved retirement fund (ARF) when those assets become available for drawdown.

• When PRSA assets become available to a beneficiary under section 787K, that individual may opt to have the assets transferred to an ARF, and the PRSA administrator must carry out the transfer.
• The amount transferred to the ARF is the value of the PRSA assets at the time the election is made, less any lump sum the PRSA administrator is permitted to pay tax-free under section 787G(3)(a).
• Where the individual opts for an ARF transfer, sections 784A and 784B (which govern the operation of ARFs and approved minimum retirement funds) apply as though the election were an option exercised under section 784(2A).
• The effect is to bring the transferred assets fully within the standard ARF regime, including the rules on investment, drawdown, and deemed distributions.