Mandatory withdrawal from a converted AMRF into a PRSA

O

orakevin

New Member
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Hey everyone,

Starting this December I have to start taking distributions from my converted AMRF even though I would rather not (thanks a lot Dáil Éireann).

I would like to reinvest those funds into a PRSA to try to keep them growing tax-exempt for another 10 years or so since I'm not ready to retire just yet.

The problem is that I'm not in Ireland anymore. I have returned to the US (dual citizen) to work on my Ph.D. I should be done with that in another 2 years or so, but right now I've no idea exactly what I'll be doing (or where) when I'm done.

Any ideas who might be able to offer me a PRSA? Irish Life apparently can't. Not a legal barrier per se, it's just they're apparently not licensed to offer products to non-residents.

Thanks all!
 
Too late I’m afraid.

You are in a post retirement account and can’t revert to pre retirement.

For reference it is possible for non residents, including US residents to transfer Irish pensions to a PRSA and defer their retirement benefits up to age 75 but not with a life company and not in your situation unfortunately
 
Hey Marc,

Thanks for the reply. Let me dig a little deeper here...

If I understand correctly, I'm compelled to take a 4% minimum distribution, all of which is taxable as income and as such subject to all the relevant taxes (PRSI, USC, PAYE).

I'm not talking about a direct transfer en masse or otherwise of the ARF funds into a PRSA.

What I envision is taking the remainder, after tax, of my distributions and investing that "income" into a PRSA. What statute prevents me from doing this?
 
Nothing prevents you from doing that, but you will get no tax relief on the way into the PRSA, and withdrawals from the PRSA will be taxable (beyond any tax free lump sum you may be able to get).
 
orakevin said:
What I envision is taking the remainder, after tax, of my distributions and investing that "income" into a PRSA. What statute prevents me from doing this?
Click to expand...
My understanding is that this is a valid option and that there is potential tax savings (particularly if your deemed disposal ARF income is taxed at the higher rate (40%). You can continue to save for your retirement in a PRSA up to 75 at which time it becomes a vested PRSA.
 
There is nothing preventing you, if you are under 75, parking any amount of money in a PRSA. But unless you have earned income you won’t get a tax deduction upfront so in the context of deemed distributions from an ARF I’m struggling to see the benefit.

If you are a non taxpayer and you put some personal savings into a PRSA you “convert” funds taxed at 41% into income taxed at marginal rates of potentially zero so I can see an argument there
 
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