Are all pension lump sums affected by a previous enhanced tax-free Redundancy lump sum?

[redstar]

As part of a previous redundancy 9 years ago, i received the enhanced 10k tax-free exemption.
My pension was put into a PRB, which I have not touched yet.

I understand i would not be entitled to take a tax-free lump-sum from this PRB when i retire it.

I also have 2 other pensions, from different companies (a PRSA [currently paying into] and another PRB). Would my entitlement to a TFLS from those pensions be affected?

 

[LDFerguson]

I also have 2 other pensions, from different companies (a PRSA [currently paying into] and another PRB). Would my entitlement to a TFLS from those pensions be affected?

No - when you waived your right to a tax-free lump sum, that decision was only in relation to that particular pension scheme (or a PRB coming from it.) Any other pension arrangements are unaffected.

 

[redstar]

Thanks, good to know!

 

[Kev1964]

No - when you waived your right to a tax-free lump sum, that decision was only in relation to that particular pension scheme (or a PRB coming from it.) Any other pension arrangements are unaffected.

I was in a similar position in 2015. The redundancy package was c€110,000 but was reduced by c€10,000 because I declined a tax free option. I was told that exercising it would mean I could not draw down a TFLS from my DC plan. The fund was worth about €400,000 at the time so it made no sense. Several of my colleagues I considered pretty switched on took the extra cash at the time. Did I make the right choice?

 

[redstar]

Declining the 10k Tax-free redundancy means you can avail of 100k TFLS from your 400k pension. Yep, i think that was a good move alright ! Fair play.