Any excess in the AVC can be rolled into an ARF or equivalent...
That was the retirement benefits, AVC simply a way to bridge the gap in the lump sum shortfall,, say you are entitled to a lump sum of 100K but you only qualify for 50 and your AVC is 70 then 50 of that goes to lump sum and the 20 towards ARF, taxable amount etc....
My understanding is that if the value of your main scheme benefits plus AVC fund exceed the revenue funding limit the excess goes the trustee of the main scheme. Therefore there is a potential for wasted AVC contributions.
Also in an ARF is it the capital or interest from it that is drawn down....
No they don't. His pension will be worth more than he's allowed have. If you could just roll it over into an ARF, what's the point in having limits if they can just be ignored.Any excess in the AVC can be rolled into an ARF or equivalent...
That's using the assumption that the employer made the contributions. The Revenue won't take the your AVCs and give it to the state. They will unwind the value of your contribution that makes you overfunded, refund it to you and tax it as income. But you won't be overfunded.My understanding is that if the value of your main scheme benefits plus AVC fund exceed the revenue funding limit the excess goes the trustee of the main scheme. Therefore there is a potential for wasted AVC contributions.
My understanding is that if the value of your main scheme benefits plus AVC fund exceed the revenue funding limit the excess goes the trustee of the main scheme. Therefore there is a potential for wasted AVC contributions.
Thanks for clarifying this Steven.That's using the assumption that the employer made the contributions. The Revenue won't take the your AVCs and give it to the state. They will unwind the value of your contribution that makes you overfunded, refund it to you and tax it as income. But you won't be overfunded.
I agree; this is a pragmatic way forward.And at 34 years of age, there is plenty of opportunity to skip contributions in the future to bring your pension back in line...if your AVCs perform amazingly well.
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