There is no Prsi charged on occupational pensions or annuities. Prsi M class applies and this is free. ARF drawdowns have a 4% Prsi deduction until you reach age 66.
Thanks bstop. So we are both taking 25% tax free from our occupational pensions and investing remainder in ARF's for which any drawdowns till age 66 will be subject to 4% PRSI. Class M doesn't apply to us.
Have I understood your answer correctly ?
Thanks bstop. So we are both taking 25% tax free from our occupational pensions and investing remainder in ARF's for which any drawdowns till age 66 will be subject to 4% PRSI. Class M doesn't apply to us.
Have I understood your answer correctly ?
Yes that's correct.
The Prsi on ARFs is S class. The S class contributions are useful if you need extra Prsi contributions in order to qualify for the contributory pension.