Lump sum and tax

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partnership

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Previously received a redundancy payment. Will be receiving a pension lump sum next year so am trying to plan. Want to know if it will be subject to any tax. I received about 105000 after paying tax. At the time the future lump sum of 65000 was taken into account for the exemption. However this lump sum may now be 100000 so not sure whether it will be tax free or not
 
If the lump sum is from the pension from the employment with which you took redundancy and if you waived your rights to the pension lump sum when you took redundancy then you cannot take a pension lump sum from that occupational pension. There is a loophole currently available though - you can transfer your occupational pension into a PRSA and then retire the PRSA taking 25% lump sum.
 
partnership said:
It is same company but I did not waive my entitlement. It was taken into account for tax.
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As you did not waive your entitlement and if the occupational pension is a defined contribution scheme then you should be able to avail of a tax free lump sum of 25% of the DC fund value (up to €200K tax free) if choosing the ARF route on retirement (or 1.5 time final salary if choosing the annuity route)
 
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