P
PM1976
Guest
Hi All,
I have a query regarding a prsa.
My parents took out two prsas in 2007. They both used SSIA money that matured. They are both over 65 (72 & 69 yrs old). They initially invested €7,500 each.
The reason they took out the prsas was to avail of a lump sum rebaid from the revenue (I think they followed advice from a newspaper article).
They recently received an update on the prsa and it seems they can withdraw 25% now and receive and a monthly income of €55.
If they want all there money they are subject to income tax on the full amount less the 25% (Maturity value €10,500).
As far as I can see they will lose money on the PRSAs as they will be cashing them in and will most likely be in the higher tax bracket.
So instead of having the initial €7,500 from there ssias they will have to pay tax on 75% of the 10,500.
Has anyone ever come accross this before ?. Am I correct in what I am thinking above. Would a company accept an investment from people of there age ?, if they don't cash out the prsa they will never recover there money unless they live an extremely long time.
Any help would be greatly appreciated.
Many thanks
I have a query regarding a prsa.
My parents took out two prsas in 2007. They both used SSIA money that matured. They are both over 65 (72 & 69 yrs old). They initially invested €7,500 each.
The reason they took out the prsas was to avail of a lump sum rebaid from the revenue (I think they followed advice from a newspaper article).
They recently received an update on the prsa and it seems they can withdraw 25% now and receive and a monthly income of €55.
If they want all there money they are subject to income tax on the full amount less the 25% (Maturity value €10,500).
As far as I can see they will lose money on the PRSAs as they will be cashing them in and will most likely be in the higher tax bracket.
So instead of having the initial €7,500 from there ssias they will have to pay tax on 75% of the 10,500.
Has anyone ever come accross this before ?. Am I correct in what I am thinking above. Would a company accept an investment from people of there age ?, if they don't cash out the prsa they will never recover there money unless they live an extremely long time.
Any help would be greatly appreciated.
Many thanks