Are they taxing lump sum amount?

So would it be possible to apply for retirement in November and withdraw the application in December if they don't decide to (or can't) tax the lump sum?!?
 
Anyone any answer to the above question?
My old man doesn't want to retire, but he's seriously considering it as if the lump sum is taxed it will kill the prospect of him paying off his mortgage with it. Is the Commission On Taxation going to report soon?
 
Taxing lump sums

Article in yesterday's Sunday Ind re public service pensions by Maeve Sheehan and Jim Cusack mentions that "pension lump sums will be taxed from Feb 29". Is this correct. All I was aware of was that calculations would be based on salaries that were paid before cuts (2008 I think). This is the reason that a large number will take the option of leaving before end of Feb 2012.
Anyone got any clarification on whether lump sums will be taxed?
 
See the attached link http://www.finance.gov.ie/viewdoc.asp?DocID=6667 which indicates that lump sums over €200,000 are taxable from the 1st January 2011.
In regards the article, come on, you hardly expect a full, accurate and well researched story? The line where they say the lump sums will be taxed after 29th February 2011 is wrong, they will be cut but not because of tax. After the 29th February superannuation benefits will be calculated based on reduced payrates introduced on the 1st January 2010. Up to the 29th February 2012 benefits will be based on payrates before the paycut was implemented.
But just to make it interesting, while the lump sum will reduce for someone who retires on 1/3/12 rather than if they retire on the 29/2/2012, the pension could be better for a high earner who retires on the 1/3/12 rather than if they retire on the 29/2/2012. This is because the Public Sector Pension Reduction http://www.finance.gov.ie/documents/publications/guidelines/faqpubsecpensreducmar11.pdf
will not be applied to pensions paid after 1st March 2012.
 
You must log in or register to reply here.
Back
Top