Mommabearof3
Registered User
- Messages
- 141
Also bear in mind that merging pensions, where possible, should only be done with full knowledge of all of the implications.If I am a member of an occupational pension scheme, can I take out a PRSA?
Yes, a member of an employer-sponsored pension scheme may also take out a PRSA.
You can have multiple pensions and still benefit to the max from the tax free lump sum on a cumulative basis (e.g. 25% TFLS each time you retire a pension until you hit the €200k ceiling cumulatively). I myself have a PRSA (split into 5 separate policies for various reasons), a personal pension plan and a buy out bond. I'm retiring a small PRSA policy now early (late 50s) while I consider my options and decide whether or not I'm going to go into paid employment again.My other question is in relation to the TFLS upon reaching retirement age how does that work? Can we still get a transfer value and try and buy an ARF by combining the 2 upon retirement age?
Perhaps going forward it may be an option to make AVC payments directly to his DC pension ?Because it's a defined contribution scheme it is treated exactly the same as a PRSA at retirement. 25 % tax free lump sum and the remaining 75% used to buy an Annuity , ARF or withdrawn as taxable income.
There is no discrepancy regarding taxation.
He was entitled to his age related tax allowable yearly pension contributions.
His mix of where the contributions went is his only error.
He has not gained any tax advantage or disadvantage as a result of the error.
Just leave everything as it is, there will be no revenue problems in the future.
If he wants to continue to make AVCs he can open an AVC PRSA.
Keep the existing PRSA, this is totally allowable.
He will be able to combine all these pensions when he retires and then choose his retirement options.
Yes.So leave the PRSA where it is just stop making contributions and open a PRSA AVC for future contributions? Do I need to tell revenue anything should I advise them of the situation would you think?
I'm not sure if you can merge a PRSA into an occupational scheme?Thanks everybody for all the input could I just ask one other question if the PRSA is now closed off would we be better trying to get it moved into the occupation defined contribution scheme or just leave it? It was set up as execution only years ago to try to have some type of fund but I wondered how it will be managed going forward in terms of fees and growth?
Benefits from a PRSA can be transferred to another PRSA, to an occupational pension scheme or to an overseas arrangement.
I would say keep it separate.
It will operate exactly the same whether payments continue to be made into it or not.
Have a look at the charges and then check out the execution only brokers who post on AAM and see if they offer lower charges.
Yes. Fund(s) invested in will continue to go up and down, exactly the same as when premiums were being paid.What happens to the Zurich fund when it is closed does still accrue growth without any premiums?
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