BondUrsula
Registered User
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About 10-12 years ago I made three lump-sum payments to three tax-deferred "personal pension accounts", two of these now worth about 10K & 20K is with one of the national banks. The third one also now worth about 30K was originally with a liquidated insurance company and currently with a Life Assurance firm. I understand this last one is a "personal pension bond" and not a vested PRSA and therefore cannot be moved to an ARF upon retirement.
I trying to find the best possible outcome for these three pots of money. I would like to withdraw all or most of these monies in a small number of instalments from late 2017 or early 2018 onwards. So far I have received under €35K as tax-free lump-sums from all sources. I read in various documents from Revenue and elsewhere that there is a life-time cap of 200K for for such lump-sums. My understanding is that I can only withdraw 25% of each of the three funds as tax-free lump-sum. The remaining has to be put into annuities or withdraw as a taxable income. My preferred option would have been to withdraw this in 3-4 instalments to reduce tax-liabilities. Alternative may be to cash all remaining investments and use a 5-year income averaging to claw back some of the tax paid.
I would be extremely grateful for your expert opinion on the subject. Here is some background information as to my current income status relevant to the query.
I recently (2015) retired having reached the mandatory retirement age and since then living on a contributory state pension of €233/wk from the Dept. of Social Protection. Apart this pension I also receive (employment related) nominal monthly pensions from 4 different sources amounting in total €140/wk before tax liabilities. My spouse has 8 more years of service for mandatory retirement and is a member of a defined benefit retirement scheme and may receive about twice what I am receiving currently. We pay PAYE tax on our joint income. We have no financial liabilities in terms of mortgage or other debts and have some savings to cover for any unforeseen liabilities.
Thank you very much in advance,
BU
I trying to find the best possible outcome for these three pots of money. I would like to withdraw all or most of these monies in a small number of instalments from late 2017 or early 2018 onwards. So far I have received under €35K as tax-free lump-sums from all sources. I read in various documents from Revenue and elsewhere that there is a life-time cap of 200K for for such lump-sums. My understanding is that I can only withdraw 25% of each of the three funds as tax-free lump-sum. The remaining has to be put into annuities or withdraw as a taxable income. My preferred option would have been to withdraw this in 3-4 instalments to reduce tax-liabilities. Alternative may be to cash all remaining investments and use a 5-year income averaging to claw back some of the tax paid.
I would be extremely grateful for your expert opinion on the subject. Here is some background information as to my current income status relevant to the query.
I recently (2015) retired having reached the mandatory retirement age and since then living on a contributory state pension of €233/wk from the Dept. of Social Protection. Apart this pension I also receive (employment related) nominal monthly pensions from 4 different sources amounting in total €140/wk before tax liabilities. My spouse has 8 more years of service for mandatory retirement and is a member of a defined benefit retirement scheme and may receive about twice what I am receiving currently. We pay PAYE tax on our joint income. We have no financial liabilities in terms of mortgage or other debts and have some savings to cover for any unforeseen liabilities.
Thank you very much in advance,
BU