Prsa cash early

Paddy2014

Registered User
Messages
34
Was there some change in recent budgets that you could cash in P r s a early stimulate Eco ony and all that .

Have public service one with 4/5 years to go , prefer to cash in and out in long term post office , better return I think about 21 or 22 grand in it Thks

Paddy
 
I believe you can withdraw up to 30% of your AVCs.

More info here, scroll down to AVC Withdrawals section.

[broken link removed]
 
Actually... the situation isn't clear to me...

http://www.independent.ie/business/...vc-offer-expected-amid-warnings-29089192.html
"The scheme is restrictive as it excludes personal retirement savings accounts (PRSAs), employer-paid contributions, regular employee contributions and self-employed personal pensions."

Possibly it just applies to "AVCs" into a PRSA, so if you just have a PRSA funded by your employer contributions you could not withdraw that.
 
Ok, definitive answer here...[broken link removed]

The option to withdraw up to 30% applies to AVCs made to occupational pension schemes and PRSAs only. It does not apply to ordinary contributions, retirement annuity contributions, or additional contributions made to a defined benefit scheme for the purchase of notional service credits.
Furthermore, employer contributions to AVCs, irrespective of how they are described, are outside the scope of the early access arrangements.
 
If you have a PRSA AVC, you can take out 30%. If it is an ordinary PRSA, you can't.

You know you have to pay tax if you took out that portion too?

Are you investing in cash in your PRSA? If so, yes, the returns would be better on a deposit with no DIRT or management fee. But you can also invest in equities and bonds in your PRSA which also grow tax free.


Steven
www.bluewaterfp.ie
 
I am considering exercising that option to withdraw 30% of my AVCs. It should make sense as I ceased full-time employment recently. However, my question is, would such a withdrawal impact my tax free lump sum entitlement from my pension when I eventually do retire?
 
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