It is a company pension. I am self employed. It does not sound right to say I cannot cash out early if I agree to repay the tax benefits when I made contributions. So any pension company in Ireland can lock up peoples contributions completely? Even if I agree to re-pay any tax benefits gained on contributions?You cannot "cash out" the pension early. There is no option to repay the tax relief.
You don't say what type of Pension it is, Occupational Pension, PRSA, Personal Pension. You might be able to retire early, after age 50, take some of the fund as a lump sum and the rest as a pension income, but you must leave employment and "retire".
What you seem to be proposing is NOT POSSIBLE.
You can only get a refund of pension contributions in very limited circumstances. I did it once years ago.It is a company pension. I am self employed. It does not sound right to say I cannot cash out early if I agree to repay the tax benefits when I made contributions. So any pension company in Ireland can lock up peoples contributions completely? Even if I agree to re-pay any tax benefits gained on contributions?
Thanks Clubman. Holy Moly. I did not know that. Pretty damning on the pension industry and/or revenues rules in Ireland. No real freedom outside the reguarl big players even if with shrink wrapped inside self share trading platform. Thanks again for info.
@Dave Vanian's suggestion above may be relevant to you if the key issue is a desire to have more hands on control of how your pension savings are invested. But bear in mind that even professional active managers may run up higher trading costs and poorer returns than, say, passively managed index tracking.
This is definately something I am looking into. The Fees even to keep the money wrapped as a pension and the trading fees look huge compared to any regular stock broking account. €15 per trade (pension wrapped) versus €1 per trade. Still definitely something I am investigating.If your purpose is to choose your own shares that your pension fund invests in, you could transfer it into a pension product that facilitates self-direction.
To be clear I did not describe any strategy. I just wanted to understand the legalities of the situation.There is a non-dodgy way to avoid paying tax on your investment gains.
It’s called a pension.
To be honest, your strategy, it I can call it that, is ridiculous. Your focus should be on ramping up your pension contributions, i.e. trying to contribute €25,000 a year, as €100,000 at 48 on a €100,000 salary represents woeful underprovision.
Instead, your grand plan is to turn your €100,000 into €60,000 (which isn’t even allowed) and then to punt that in a US stockbroking account where your income and gains will be taxable.
Absolute madness.
So it is a limited company pension. I am a director of the company. I may need to wind down the company as it is not going as well as I hoped. I think I may be wasting my time with it (the company) to be honest.You cannot "cash out" the pension early. There is no option to repay the tax relief.
You don't say what type of Pension it is, Occupational Pension, PRSA, Personal Pension. You might be able to retire early, after age 50, take some of the fund as a lump sum and the rest as a pension income, but you must leave employment and "retire".
What you seem to be proposing is NOT POSSIBLE.
Cashing out the pension and using the proceeds in a US brokerage account is a strategy.To be clear I did not describe any strategy. I just wanted to understand the legalities of the situation.
Back in 2007, I had a client who was under 50 years of age and managed to cash in her pension completely. It was with Canada Life at the time. I don't know how she did it. I have a feeling she got lucky that someone was willing to break the rules for her. She needed the money to keep her business afloat (it eventually went bust anyway).You cannot "cash out" the pension early. There is no option to repay the tax relief.
You don't say what type of Pension it is, Occupational Pension, PRSA, Personal Pension. You might be able to retire early, after age 50, take some of the fund as a lump sum and the rest as a pension income, but you must leave employment and "retire".
What you seem to be proposing is NOT POSSIBLE.
Terms and conditions of a pension, you get really favourable tax relief and in return, you have to keep the money there for your retirement. There is no option of cashing out early. It is not in the terms that you signed up for when your company was able to write that contribution off as a business expense.It is a company pension. I am self employed. It does not sound right to say I cannot cash out early if I agree to repay the tax benefits when I made contributions. So any pension company in Ireland can lock up peoples contributions completely? Even if I agree to re-pay any tax benefits gained on contributions?
I'm not sure if there is any similar provision for self-employed people, in the scenario where the company has shut down.
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