Redundancy affects tax free pension drawdowns?

[CormacH]

Hi, I'm going through redundancy (2nd time in my life) and have been told that the redundancy payment(s) affect the amount that you can draw down tax free when the time comes to access your pension.

I appreciate that there is probably a lot to this so I'm just trying to get some basic information (could not find anything on the Revenue website). I understand that there is a €200k cap on the amount that you can receive as redundancy payments but I had no idea that it affected pensions as well.

Are all parts of the redundancy included in this - statutory, ex gratia, notice payments, etc.?

Thank you.

 

[Peanuts20]

Potentially yes.

First question, did you take a tax free sum the last time.?
Bear in mind that Statutory will be tax free and should have no impact on pension, It is the ex gratia (if any) on top of that where the issue may arrive. So are you getting an ex gratia payment.

This might help

Taxation of lump sum payments

Lump sum payments in compensation for loss of employment are subject to tax. How is tax calculated and what are your entitlements?

www.citizensinformation.ie