Scenario:
Worker has retired from public service in mid-2008 with DB final-salary pension.
Worker has had an AVC since 1992 (broker is Cornmarket). At retirement, the AVC was transferred into an ARF, from which a small annual income is drawn.
There is also a second AVC, taken out with a discount broker in 2006. The worker made contributions during 2006, 2007 and 2008. No ongoing contributions have been made since retirement.
This PRSA-AVC is paid-up, but not yet transferred into an ARF.
During 2008 and 2009, the person works part-time with the same employer. There is also some small self-employed income. So there is wage income of approx 12000 during 2009.
I assume it is ok to make a lump-sum PRSA-AVC contribution to reduce the 2009 tax bill?
The idea would be to subsequently transfer the PRSA-AVC into the existing ARF??
Worker has retired from public service in mid-2008 with DB final-salary pension.
Worker has had an AVC since 1992 (broker is Cornmarket). At retirement, the AVC was transferred into an ARF, from which a small annual income is drawn.
There is also a second AVC, taken out with a discount broker in 2006. The worker made contributions during 2006, 2007 and 2008. No ongoing contributions have been made since retirement.
This PRSA-AVC is paid-up, but not yet transferred into an ARF.
During 2008 and 2009, the person works part-time with the same employer. There is also some small self-employed income. So there is wage income of approx 12000 during 2009.
I assume it is ok to make a lump-sum PRSA-AVC contribution to reduce the 2009 tax bill?
The idea would be to subsequently transfer the PRSA-AVC into the existing ARF??