net pension from DB

[poorrelative]

just wondering what tax credits one receives when drawing an occupational pension after 60. For example, if you have a DB pension of exactly 20k is there no tax at all? I also read that no PRSI either on DB so 20k pa would equate to €1648 per month?

 

[Protocol]

The same tax credits as you would if you had wage income.

There is an Age tax credit, but that kicks in when you hit 66.

 

[poorrelative]

Thanks Protocol, I wasn't sure whether the employee tax credit still applied if not working but I see that you are correct

Introduction to income tax credits and reliefs

Tax reliefs reduce the amount of tax that you have to pay. Find out about the different types of income tax relief that apply to your circumstances.

www.citizensinformation.ie

 

[Protocol]

AFAIK, if the pension is paid through the PAYE system, then the employee tax credit is available?

 

[Ruffian]

the employee tax credit is available

It is.

 

[ginslia]

Can anyone confirm re PRSI and a DB at 60? My understanding was that you are exempt from PRSI when you start the State Pension, so at least 66, and not 60.

 

[Ruffian]

Can anyone confirm re PRSI and a DB at 60

No PRSI on pension income. But there is on an ARF drawdown (Class S).

 

[S class]

Occupational pensions are class M Prsi.
Class M has no benefits and is zero cost.
You are still in the Prsi system but not paying for the contributions.