Many thanks. I assumed that I would be allowed 40,000 of the AVC tax free - theYou pay income tax at the marginal rate so if you took it in one go, you'll be paying over 50% in tax.
Steven
www.bluewaterfp.ie
Hi Tommi
Some of your AVCs can be taken tax free, being the difference between what your pension scheme provides and the Revenue maximum.
See section 9.4 of the Revenue pensions manual for details which sets out the general rules with regard to maximum lump sum benefits upon early retirement - on the grounds other than ill-health: [broken link removed]
If I were you, I would look for a quote from your Pensions Department of your options and in seeking the quote I would make it clear that you wish to take the maximum possible tax free amount.
If your AVCs are with Cornmarket, which is most likely, make sure to arrange a meeting with one of their advisors who should be able to walk you through this stuff. God knows you've paid them enough over the years.Many thanks. I will look into that. Thanks again.
By all means contact Cornmarket but strongly advise get a 2nd opinion.
I'm not advising OP buy any more products off them, merely that s/he gets the value of what's already been paid for. They do know the PS pension rules well by all accounts and I've heard of them being really good in these situations. It's hard to blame them for the ludicrous terms the PS unions have agreed with them for monopoly products like AVCs by salary deduction.By all means contact Cornmarket but strongly advise get a 2nd opinion.
oysterman,I'm not advising OP buy any more products off them, merely that s/he gets the value of what's already been paid for. They do know the PS pension rules well by all accounts and I've heard of them being really good in these situations. It's hard to blame them for the ludicrous terms the PS unions have agreed with them for monopoly products like AVCs by salary deduction.