I have written a detailed guide on this subject which is available for free on my website
Personal Savings Accounts - Everlake
This guide sets out how a Personal Retirement Savings account (PRSA) combined with an Approved Retirement Fund (ARF) can be used by any Irish Investor between the ages of 18 and 75 to invest personal savings in a tax efficient wayglobalwealth.ie
Thanks for that breakdown Liam.
I'm a sole trader, my income rarely exceeds 50K and will likely be less for the next year due to current climate...
I do plan on making regular contributions in future years to the PRSA. If for example I made max contribution on 50k earnings of €12,500 (25% age 45) yearly how does the 100k lump sum factor into giving me tax relief? Is it based on relief on any payments I make above the 25% yearly limit?
Setting the tax relief or lack thereof of investing 100k in either a PRSA or a regular trading account, and to keep it simple assume I only ever invest the 100k (with no further money added)....
If both account types were used to buy something simple like an ETF market tracker and held for 20 years, would the compounding effect within the PRSA (no tax till the end) not still out pace the Trading Account due to the loss of capital with regular tax withdrawls?
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