PRSA and DB Pension - Tax relief

G

galgal5003

Registered User
Messages
17
Hi all,

Very basic question!
I have a PRSA that I set up in 2016 and have since joined a company where I'm part of a DB pension scheme.
Can I continue to claim tax relief on my PRSA contributions?

Thanks in advance
 
No, you cannot claim tax relief on contributions into a personal plan whilst being a member of a company plan.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
You can set up a new AVC PRSA which would be linked to your DB scheme. You can then claim tax relief up to your allowable age limits on contributions to this new PRSA.
 
Thanks both, I need to inform Revenue asap and determine the tax underpayment. I'll look into an AVC PRSA but what should I do with the current PRSA that I have been contributing to monthly? Can I transfer this to an AVC PRSA?
To make matters even more complicated, I have another PRSA that was used to facilitate the transfer of a pension I had in the UK, which I haven't contributed to since the transfer.

I'm reluctant to have three PRSAs on the go (my current one, the one for UK pension transfer and another AVC PRSA). Any further advice would be welcomed.
 
You cannot transfer your existing PRSAs to a new AVC PRSA. There is no problem keeping several PRSAs. You do not need to be contributing to any of your old PRSAs they can remain as they are until you decide to draw them down.
 
Sometimes it can be beneficial to have several pension pots as you can "retire" them at different times, taking out the tax-free lump sum etc., even if you haven't given up the day job yet. You could, for example, use the other PRSAs to fund a move to part-time work before retirement, pay off any lingering debts etc.
 
HI,

I have a DB pension & opened a PRSA some years ago as well.
I cant find on the revenue website if I am entitled to claim tax relief or not, its mentioned here you are not allowed to claim tax relief if you have a DB.
Thanks
 
tom_12345 said:
HI,

I have a DB pension & opened a PRSA some years ago as well.
I cant find on the revenue website if I am entitled to claim tax relief or not, its mentioned here you are not allowed to claim tax relief if you have a DB.
Thanks
Click to expand...

The type of Occupational Pension Scheme that you're in is irrelevant - doesn't matter if it's DB or DC. If you are an active member of a DB or a DC pension scheme and you have only one income (from the employment of the pension scheme) then any AVCs you want to make must be either into the scheme's AVC facility or an AVC PRSA. Not a common or garden PRSA - it must be set up as an AVC PRSA.
 
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