Accessing PRSA at 60

J

JohnFK

Registered User
Messages
5
Hi
I'm 59 and have stopped working. I have several deferred DB pensions which I can access when I reach 65. I also have a PRSA which has approx €50k value. When I'm 60 next year, can I access my PRSA, take 25% tax free and draw down the remaining balance at 20% tax rate and exhaust it by the time I reach 65, after which I will be paying some tax on my combined DB pensions at 40% ?
Or am I prevented from accessing my PRSA until I also access my deferred DB schemes ?
 
Hi John , it will depend on type of PRSA they you have . If it’s a PRSA AVC it will be linked to the main scheme and all benefits from this employment must be accessed at the same time so you will need to wait until 65.
Alternatively if it is a stand alone PRSA you can access 25% tax free and balance to ARF which can drawn down at your marginal rate of tax
 
If you set up an ARF you will pay Prsi at class S on the drawdowns. These Prsi contributions are reckonable for the contributory old age pension and also might allow you to qualify for the benefit payment for 65s.
 
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