How much of my AVC lump sum will the Revenue allow me to take tax free.

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OLD MONEY

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My final salary will be 50,000 p.a when I retire after 40 years service.However I average another 20,000 p.a in overtime.I have AVCs of 40,000.How much of my AVC sum will the revenue allow me to take tax free?
 
If you are a Civil Servant then your normal retirement lmp sum will be circa 150% of Final Salary - so €75,000. However under Revenue rules you can get up to 150% of total earnings (averaged over 3years), so perhaps 150% of €70,000 = €105,000.
So I estimate that you could take a lump sum of €30,000 from your AVC fund. All €105,000 should be tax-free. The balance of your AVC fund could buy an additional Annuity or be invested into an Approved Retirement Fund.
 
Thanks for replying to my query. Is it my average gross salary for the last 3 years before I retire or is it averaged on the best 3 of the last 10 years before I retire?

Thanks
 
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