PRSA Cancel

[stef_nz]

Hi

I have been paying into a company PRSA for 18 months is there anyway to cancel and get any of the money back?

Thanks

 

[ClubMan]

I don't think so other than in certain cases of inability to work due to illness/disability (leading to effective early retirement).

Update: from the Pensions Board's [broken link removed]:

6. Getting my PRSA Benefits

When can I take my PRSA benefits?

You can normally take your benefits when aged between 60 and 75.
In certain circumstances you can take your benefits before then, such
as if you retire from employment at age 50 or over, or if you can no
longer work because of a serious illness or disability.
However, it is not usually possible to cash in your PRSA before you
reach 60 years of age (or retirement). Likewise, you cannot use your
PRSA as security for a loan or assign it to someone else.

 

[Abbeykiller]

The whole point of PRSAs was to increase flexibility but looks like the '2 year rule' associated with Occupational Pensions was lost.
I think there is a watered down version which states that if there are no contributions for more than 2 years and the fund is valued at less than €1000, the provider can cancel the PRSA and send you the proceeds. This might be in the Ts & Cs of your PRSA so worth having a look.

 

[ClubMan]

The whole point of PRSAs was to increase flexibility but looks like the '2 year rule' associated with Occupational Pensions was lost. .

But isn't that rule open to abuse? For example a 41% taxpayer makes contributions for less than two years and gets tax (41%) and PRSI/health levy (4% + 2%) relief and then withdraws from the scheme at pays only 25% (?) on the proceeds? Obviously they also lose any employer contributions too. I think that this stategy was mentioned before by somebody. Is it legal? Is it illegal tax avoidance? Is it tax evasion?