Timing of drawdown from PRSA

[Slim]

Hi. I was wondering if, as in contributing to a PRSA, you can draw down in the current year and have it counted in the prior year for tax purposes? I ask because I want to be precise about how much can be drawn down and it may take end of year payslips or P60s to calculate this exactly. The PRSA is modest and a top up to occupational pension so wish to remain in the 20% tax band. Thanks,

 

[Slim]

Any views. Should I have posted this in 'Tax'?

 

[Steven Barrett]

Your post is unclear. Are you making a contribution into a PRSA or taking money out?


Steven
www.bluewaterfp.ie

 

[Slim]

Sorry. Proposing to draw down from a PRSA in retirement but want to remain in 20% tax band, so wondering if we can draw down in, say 2019, for tax year 2018 after we get P60s etc. Hope that makes sense.

 

[Conan]

No. If you are drawing down from a (vested) PRSA (when you have actually retired) any drawdown is liable for tax in the year of payment. So if you draw down in 2019 it is income in 2019 and thus taxable in 2019.

 

[Slim]

Thanks. That's very clear.