# 'Extra' contributions to single premium PRSA?



## usrbin (17 Aug 2007)

Sorry if this is a dumb question, but is a single premium PRSA strictly one-deposit-only? Is there no way at all of making further lodgements/deposits in future years? 

If so, what is the recommended type of PRSA for making variable, once-yearly PRSA savings at tax time? Thanks!


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## ClubMan (17 Aug 2007)

I doubt that in the general case you cannot make further contributions. I have a "single contribution" _PRSA _to which I have made more than one contribution (albeit not regular contributions). Just ask your broker or the _PRSA _provider. Make sure that your _PRSA _is a 0%/1% or similar one and not a 5%/1% one unless you feel that the high charges are justified.


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## LDFerguson (17 Aug 2007)

If you're thinking of contributing a variable amount once a year to a PRSA, you have two options: - 

(1) Start a lump sum PRSA and add to it each year.  There's no problem doing this.  

(2) Start an annual contribution PRSA - you'll get a reminder from the PRSA provider each year that your annual contribution is due and there's no problem changing the contribution each year.  

There's very little to choose between either of the above.  

Liam D. Ferguson
www.ferga.com


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## usrbin (27 Aug 2007)

Thanks to you both for your information. LD, can I just double-check, when you say

> (1) Start a lump sum PRSA and add to it each year. There's no problem doing this. 

is 'lump sum PRSA' = 'single premium PRSA' ?

Cheers!


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## ClubMan (27 Aug 2007)

Are you sure that there is such a thing as a "single contribution PRSA" per se as opposed to a _PRSA _that is set up (at least initially) with a single lump sum contribution, with no ongoing regular contributions but which can usually or always still accept subsequent lump sum topup contributions (maybe subject to some minimum amount) such as annually or whenever you have the cash spare to contribute?


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## LDFerguson (27 Aug 2007)

usrbin said:


> is 'lump sum PRSA' = 'single premium PRSA' ?


 
Yes.


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## LDFerguson (27 Aug 2007)

ClubMan said:


> Are you sure that there is such a thing as a "single contribution PRSA" per se as opposed to a _PRSA _that is set up (at least initially) with a single lump sum contribution, with no ongoing regular contributions but which can usually or always still accept subsequent lump sum topup contributions (maybe subject to some minimum amount) such as annually or whenever you have the cash spare to contribute?


 
Sorry - I don't understand the question.  It's possible to set up a PRSA that accepts contributions at regular intervals e.g. monthly, annually etc.  Or it's also possible to set up a PRSA with a once-off contribution and no expectation of any further contributions.  But with the latter, it's simple to add additional monies on an ad-hoc basis whenever you want.  

Hope this helps.


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## ClubMan (27 Aug 2007)

Sorry - what I meant was ... is there actually a class of _PRSA_, which we will call a true single lump sum contribution _PRSA, _that can only accept a single lump sum contribution and never another contribution (another lump sum or even regular contributions) thereafter? I would have thought not and that a _PRSA _provider is never going to turn money away?


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## Homer (27 Aug 2007)

I can't imagine why anyone would set up such a product and I'm not even sure it's allowed under the PRSA legislation.

If the policy was set up as a single premium policy, I presume this just means that there were no arrangements in place for regular future contributions at the time the policy was taken out.

Regards
Homer


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## ClubMan (27 Aug 2007)

Thanks - that's what I thought. I guess that the _PRSA _provider might put some limit on the size of a lump sum that they would accept or something?


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## Bez (28 Aug 2007)

I heard from someone too that there is no such thing as a lump-sum PRSA just a single contribution one.


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## LDFerguson (28 Aug 2007)

ClubMan said:


> Thanks - that's what I thought. I guess that the _PRSA _provider might put some limit on the size of a lump sum that they would accept or something?


 
Not really - in the interest of prudence they will sometimes make enquiries if an individual appears to be making a contribution that far exceeds his limits for tax relief.  

Some funds, particularly those with guarantees, limit the maximum an individual can invest but such funds are not available in Standard PRSAS.


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## LDFerguson (28 Aug 2007)

Bez said:


> I heard from someone too that there is no such thing as a lump-sum PRSA just a single contribution one.


 
They're the same thing.


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## Bez (28 Aug 2007)

But he told me xtra contributions can be made to the single contribution PRSa


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## F. Kruger (28 Aug 2007)

Perhaps the confusion arises where the product provider cannot 'add' a single contribution to an existing one _due to system restraints _and a 'new' policy number has to be issued each time (?)_._


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## LDFerguson (28 Aug 2007)

Bez said:


> But he told me xtra contributions can be made to the single contribution PRSa


 
Who told you?  You can make additional contributions to a lump sum or regular contribution PRSA at will, save of certain system system limitations that F. Kruger mentions.


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## Bez (28 Aug 2007)

Yea that's what he said, a buddy of mine works with one of the banks.


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