Cashing in PRSA

[marsbars]

Hi All.

I am in need of some information which I can't sem to find anywhere. I have a company pension scheme which is far more beneficial to me than my PRSA. I am wondering if there is any way I can cash it in? I only have about 3,000 euro in it and would rather re-invest it elsewhere as I am happy with my company pension. Any help would be greatly appreciated.

 

[Audrey]

I'm not sure, but as far as I know you can't make use of money that you've put away for a pension until you reach pensionable age.

 

[CCOVICH]

From the Pensions Board FAQ

• How are PRSA benefits paid?

(i) The circumstances for payment of PRSA assets are set out in Chapter 2A, Part 30 of the Taxes Consolidation Act, 1997 which deals with the tax provisions for PRSAs.
(ii) Apart from the circumstances at (i) above, a PRSA provider may not pay out PRSA assets except where:
- the value of the PRSA assets does not exceed €650 at the time of request by the contributor, and

- no contributions have been made for at least 2 years in which case the PRSA provider may refund the contributor’s PRSA assets without the contributor’s consent
and where 3 months or more must have expired since the provider served a written statement advising the contributor to transfer his PRSA assets to another PRSA or pension arrangement or to make further contributions.


Also discussed in this thread.

Note that you can cash in your own contributions to an occupational pension as long as you have been with the employer in question for less than 2 years and the pension commenced after a certain date, so it isn't correct to say you cannot access the funds until retirement age in all circumstances. Ill health may also entitle you to take pension benefits before retirement age.

 

[ClubMan]

Note that you can cash in your own contributions to an occupational pension as long as you have been with the employer in question for less than 2 years and the pension commenced after a certain date

Subject to tax (23% I think?).

 

[CCOVICH]

Subject to tax (23% I think?).

Ah, I was going to mention the tax but lost interest as it was somewhat off topic.

The income tax you pay on a refund of your own contributions to an occupational scheme is 20% (the standard rate). Note that you do not get any of your employer's contributions, these are lost (you can retain them if you leave the pension untouched). So there is a tax advantage to higher rate tax payers, as they have will received tax relief at 48% (42% tax, 2% health levy, 4% PRSI) on their contributions when deducted.