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THE PRAXIS PLAN
SELF ADMINISTERED APPROVED
RETIREMENT FUND
What is The Praxis Plan?
The Praxis Plan is a self administered Approved Retirement Fund (ARF) and a self administered Approved Minimum
Retirement Fund (AMRF).
What is an Approved Retirement Fund (ARF)?
An ARF is a special investment fund which can give you flexibility in terms of how you use your retirement fund. With
an ARF you re-invest your retirement fund and take the money out as you need it. The Praxis Plan allows you to take
control over where these funds are invested.
An ARF is provided by a Qualifying Fund Manager such as Harvest Financial Services Ltd.
What is an Approved Minimum Retirement Fund (AMRF)?
In order to take out an Approved Retirement Fund you must have a guaranteed pension income for life of €12,700
per year (from pension sources other than your ARF investment).
If you don’t, you must invest €63,500 of your pension fund into an Approved Minimum Retirement Fund until age 75 or
buy an annuity with that amount. Once you have put this money in an AMRF or an Annuity you can invest the balance
into an ARF.
What are the benefits of The Praxis Plan?
The Praxis Plan provides a variety of benefits to you in retirement:
• You have access to a wide variety of investment options and providers;
• You can invest your funds in investments that fit your risk appetite;
• Your investments grow free of both income tax and capital gains tax;
• You choose when to withdraw funds from your ARF, and how much you take; and
• On death, your funds pass to your estate.
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How do I take income from the The Praxis Plan?
You are required to take a minimum of 5% from your Praxis Plan annually (6% if the
value of the Praxis Plan exceeds €2,000,000) once you are over age 60. This can be
paid monthly, quarterly or annually. You can also make withdrawals from the Praxis
Plan as you need them. Income tax is paid on income from the Praxis Plan.
What happens to the funds when I die?
On your death, your spouse can step into your shoes and take over the
Praxis Plan tax-free. They can continue to manage the Praxis Plan
investments and make withdrawals from the fund as they wish. On the death of
this spouse the Praxis Plan is wound up and the assets pass to the estate.
What can I invest in?
The investment choice is ultimately down to you. Some of the assets clients invest
in are:
• Property (ungeared);
• Personalised Equity Portfolios;
• Corporate and Government Bonds;
• International Funds;
• Private Equity; and
• Deposits.
Why set up a Praxis Plan with Harvest?
Harvest Financial Services Limited has been providing self administered pension
solutions to clients since 1993. We administer over €800 million in retirement
funds on behalf of our clients (figure correct as at May 2013).
As an independent company, we are uniquely positioned to provide you with
the broadest possible range of investment options.
Whether you want the investment flexibility and/or the cost transparency of the
Praxis Plan, we will work with you to maximize the benefits of the Praxis Plan to
secure your income in retirement. For more information, or to arrange a meeting
to discuss the suitability of the Praxis Plan for your retirement provision needs,
please contact:
Emer Kirk on 01 2375500 or
justask@harvestfinancial.ie.
Harvest Financial Services Ltd
Block 3 The Oval
Shelbourne Road
Ballsbridge
Dublin 4
Intended for distribution within the Republic of Ireland. P: 01 2375500
E: justask@harvestfinancial.ie
W: www.harvestfinancial.ie
The information contained herin is based on Harvest Financial Services Limited’s understanding
of current Revenue practice as of 1st August 2013 and may charge in the future.
Please note that the provision of this type of product does not require licensing, authorisation,
or registration with the Central Bank of Ireland and as a result is not covered by the Central
Bank of Ireland’s requirements designed to protect consumers or by a statutory compensation
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