I’m in PAYE employment and have a PRSA – I will reach 60 next year, but I plan to continue working for a few more years. Do I “have to” draw down 5% of my PRSA fund when I reach 60 years of age ?
You can leave your pension until up to age 75. Once you mature it, the imputed distribution starts and you will have to draw down 4% each year (starting at age 61). You can always split the PRSA into different policies and mature them as you wish.
But if you want to keep on working, you can just leave the PRSA as it is until you do stop working.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
So, if I continued to work to age 65 for example & if the imputed distribution starts at age 61, does this mean I will have to draw down 5 years x 4% = 20% of my PRSA fund value as income on my retirement at age 65 ?
Steven, I don’t understand the bit about splitting the PRSA into different policies ? Is this something I could do with my existing PRSA ?
So, if I continued to work to age 65 for example & if the imputed distribution starts at age 61, does this mean I will have to draw down 5 years x 4% = 20% of my PRSA fund value as income on my retirement at age 65 ?
Steven, I don’t understand the bit about splitting the PRSA into different policies ? Is this something I could do with my existing PRSA ?
Yeah, you should be able to split the policy into number of different PRSA's. If you have €100,000, you can split it into 5 policies. You can mature each separately and take €5k tax free as you wish, then imputed distribution (although AMRF requirement will need to be satisfied too).
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
If you decided, for example, to continue working to 65 and hold off drawing any benefits out of your PRSA until 65, then you don't have to withdraw any income until you actually retire the PRSA at 65. The "imputed distribution" requirements are not backdated to age 61 or backdated at all. They only apply from when you actually do "retire" the PRSA.