A Couple of Basic PRSA Questions

R

Rebelman

Registered User
Messages
88
Hi,
I am just starting to get information about a personal PRSA - if anyone can answer the following it would be much appreciated:
  1. I am planning on setting up a standard PRSA - most companies seem to charge 5% per contribution and a 1% per annum management fee - is this standard? (I know that it is the max but they all seem to be charging it)
  2. I am 28 years old and I am in the higher tax bracket - I can pay 15% of my net earnings into the PRSA - is the 15% from January to January - I would like to put my bonus, which should be paid at the end of this month into the PRSA - is this difficult to arrange?
  3. Is there anywhere that I can check the current best performing funds - I have checked the best buys but there is no upto date best funds list (I know that past performance is not an indication etc)
  4. I have a pension from a previous employer - when I setup my PRSA is it easy to transfer my old pension to my PRSA - I presume that it would be considered a transfer rather than a AVC?
  5. If I setup a PRSA with say company X - is it easy to change to company Y after 1 year if I am not happy with company X?
Many Thanks,

Rebelman
 
Hi Rebelman

  1. You can get 0% contribution charge and a 1% fund management charged for a fixed fee at outset, discussed at length elsewhere.
  2. Yes, January to end December, simple to arrange what you suggested.
  3. You can get fund performance tables from most authorised advisers.
  4. Yes it would be a transfer not an AVC, once the transfer is less than €10,000 then it would be no problem to arrange the transfer.
  5. Yes.
 
Rebelman said:
I am planning on setting up a standard PRSA - most companies seem to charge 5% per contribution and a 1% per annum management fee - is this standard? (I know that it is the max but they all seem to be charging it)
Click to expand...
Not all are. See the many discussions on this elsewhere on AAM including this one:

The cheapest PRSA?
The tax relief is available on each tax year other than when backdating contributions to set them against the immediately previous tax year:

October 31 - what does it mean for PAYE worker?

You should hve no problem making sporadic once off payments as well as ongoing monthly payments to your pension.

Remember that for standalone pension contributions (i.e. not done via payroll where tax and PRSI relief is granted at source) you must claim the tax and PRSI relief yourself separately.

Claiming PRSI relief on standalone PRSA contribution
Is there anywhere that I can check the current best performing funds - I have checked the best buys but there is no upto date best funds list (I know that past performance is not an indication etc)
Click to expand...
The individual fund providers should have info on this but remember that past performance is no guide to future returns.
I have a pension from a previous employer - when I setup my PRSA is it easy to transfer my old pension to my PRSA - I presume that it would be considered a transfer rather than a AVC?
Click to expand...
In theory yes - in practice maybe not. How much is the fund worth and how long were you in it? If I recall correctly you can only effect such a transfer if the fund is worth less than c. €10K (maybe €12,700?) or the scheme is being wound up. If you were in this occupational scheme less than 2 years then you might be able to take a refund of personal/AVC contributions net of 23% (?) tax and then lodge it to your new pension and claim full tax/PRSI relief on it if that would work out more cost effective? But get professional advice on this if you want to investigate further as I could be wrong!
If I setup a PRSA with say company X - is it easy to change to company Y after 1 year if I am not happy with company X?
Click to expand...
Yes.

Post crossed with South's.
 
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