Prittstick
Registered User
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A retired collegue has had an ARF for a few years since retirement.
2014 was the first year that he was over 60 and therefore had to take his 5% drawdown.
He realised that he had to pay Income Tax, USc and PRSI at 4%, Class S1 on this drawdown. Thats all fine.
However, he has just received his P60 from the ARF company and it says' Number of weeks of insurable employment = 1. He had been expecting this to say 52 weeks, as he has obviously been 'employed' the full year in the ARF.
This has important implications, as he needs the 52 annual contributions at Class S, (for the next few years) to ensure his average PRSI contributions are above the 48 so he gets the full State Pension at 66.
This 1 contribution seems incorrect...if you are employed for a month, for example, you get 4 contributions, eventhough you get paid once in the month.
His Gross Drawdown was 20,000 so he was deducted 800 euro (4%) for 1 contribution!!
Any thoughts, please
2014 was the first year that he was over 60 and therefore had to take his 5% drawdown.
He realised that he had to pay Income Tax, USc and PRSI at 4%, Class S1 on this drawdown. Thats all fine.
However, he has just received his P60 from the ARF company and it says' Number of weeks of insurable employment = 1. He had been expecting this to say 52 weeks, as he has obviously been 'employed' the full year in the ARF.
This has important implications, as he needs the 52 annual contributions at Class S, (for the next few years) to ensure his average PRSI contributions are above the 48 so he gets the full State Pension at 66.
This 1 contribution seems incorrect...if you are employed for a month, for example, you get 4 contributions, eventhough you get paid once in the month.
His Gross Drawdown was 20,000 so he was deducted 800 euro (4%) for 1 contribution!!
Any thoughts, please