accessing avc's

C

clogheen

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with recent budget changes regarding access to AVC accounts and drawing down 30% of value (i think) can someone let me know what the tax liability will be. the reason i ask this is, i was made redundant from a company where i had accumulated a large AVC contribution and when i rang the pension officer he was evasive and knew very little on and stated that there would be no move on that until April and it would be heavily taxed.
My impression from the budget was the tax take would be at a minimun so as to create a cash flow into the economy. Can anyone shed some light please so i can have tackle this person with any relevant facts.
many regards
 
The tax rate on draw down of the 30% of the value of the fund will be taxed a 41% afaik and there will also be USC and PRSI payable so the effective tax rate will be 52% for most people. The details are still a bit vague as the finance bill has not been published as of yet so hold fire for the moment!
 
many thanks for the advice Baracuda, i will wait till i hear more. had a idea it was too good to be true
 
If you're not currently working it might suit you. It will be taxed as income, but if you have low or no income then your tax will be low too. As baracude says, wait for the full detail in the Finance Bill.
 
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