30% of AVCs can be withdrawn for up to 3 years

For the last few months Senator Susan O'Keefe and TD Mary Mitchell O'Connor have been trying to get an answer to a query I sent them regarding access to Pension funds being limited to OP schemes only.

Mary Mitchell O'Connor was one of the first people to speak about people having access to some of their pension funds for their own rainy day.

However, both she and Susan, have received no reply to date from either the Dept or the Minister.

Bear in mind the government introduced the PRSA system in order to encourage more people to take up pensions and a lot of employers are more interested in providing PRSAs than OP's. But then the government exclude these people from this measure.

If you too are interested to raising this as an issue, please contact your TD.
 
Tax is taken out of your whatever you are drawing out before you are sent the money by the AVC provider. Unless you tell the provider otherwise they'll deduct tax at the higher rate.

I withdrew from AVCs via this scheme ... provider was Irish Life and they had the forms on their website, I filled them in, submitted them via email (they accepted scanned forms), there was a fast enough turnaround and after a few weeks the money was lodged to my bank account.
 
I have recently become unemployed so I am considering availing of this 30% AVC draw-down (should be worthwhile as I am in a low tax bracket this year!). However, can somebody tell me if this would have any impact on the tax free lump sum that I would hope to draw down when I eventually retire?
 
knockshe said:
I have recently become unemployed so I am considering availing of this 30% AVC draw-down (should be worthwhile as I am in a low tax bracket this year!). However, can somebody tell me if this would have any impact on the tax free lump sum that I would hope to draw down when I eventually retire?
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It doesn't affect the amount of tax-free cash you can get at retirement. Your fund will be smaller.
 
knockshe said:
I have recently become unemployed so I am considering availing of this 30% AVC draw-down (should be worthwhile as I am in a low tax bracket this year!). However, can somebody tell me if this would have any impact on the tax free lump sum that I would hope to draw down when I eventually retire?
Click to expand...
Hi Knockshe, just wondering if you went ahead with this and what your experience was? I'm in a position to be able to claim some of my AVCs back at the standard rate of tax this year so it may be a Q4 decision for me...
 
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