Tax Free lump sums

J.P.

Frequent Poster
Messages
29
Hi,

As I approach retirement , I have two pension provisions in total from my time working –

1. 24 years deferred pension entitlement within a defined benefit scheme from my first job + an AVC plan under the same employer scheme which is currently worth €33,000. My maximum tax free lump sum that I will be entitled to take under this scheme at retirement is € 55,000 approx., which I will partly fund from my AVC plan & commute the balance.

2. A PRSA which I have been paying into for the past 15 years, there will be approx. €400,000 in the fund at retirement, all going well hopefully !


My question is, can I take the maximum tax free lump sum from both schemes on my retirement ? i.e.

1. €55,000 from the defined benefit scheme

2. 25% of €400,000 = €100,000 from my PRSA

Giving a combined total of €155,000 ?


Regards,


JP
 

LDFerguson

Frequent Poster
Messages
4,039
My question is, can I take the maximum tax free lump sum from both schemes on my retirement ? i.e.

1. €55,000 from the defined benefit scheme

2. 25% of €400,000 = €100,000 from my PRSA

Giving a combined total of €155,000 ?
Yes.

It's only when the combined total reaches €200,000 that there's any interaction between the two, in that you'd have to pay tax on the excess over €200,000.

Regards,

Liam
https://ferga.com/
 
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