USC on Annuity

roker

Registered User
Messages
2,045
I just received my first pension slip of the year for my annuity. As expected the USC has been deducted at 2%, so anyone now taking out a pension plan should consider they need to increase their payment to take care of this. If I had had not taken my tax free lump sum at retirement and instead added it to my monthly pension payment, I would also be paying USC on this also. I do not know how this works now, if the lump sum is exempt from USC, but it is woth considering
 
Any lump sums taken from your pension plan will be as follows:

First €200,000 tax & USC free
Next €375,000 subject to 20% tax (no USC)
Balance subject to 41% tax & USC

This is my intrepretation anyway
 
Back
Top