Can you contribute to a pension when you have a pension in payment?

C

Cameo

Registered User
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Hi
Any help appreciated.

I will be 50 in the not too distant future and I am a member of more than one occupational pension scheme. I'd potentially like to get my hands on 25% cash from at least one arrangement (and use the cash to pay off the mortgage on my PPR) which I believe is possible under the scheme rules at age 50, however I would expect to continue to earn income after age 50 (unfortunately I'd still need to work) . I understand that I would accelerate having to pay tax on the other 75% of my pension pot (via imputed distribution of ARF or something similar) by doing this.

However, my question is could I still make pension contribution to say a PRSA type arrangement and claim tax relief on any contributions even though I have drawn down one (or more) pensions? I would have thought it should be possible but hopefully someone on here more knowledgeable than me could confirm.

Many thanks
Cameo
 
Would it be possible to cash in one of your dormant pensions when you're 50
And continue to have another "current" pension?

For example I have a buy out bond from an earlier employment which I can withdraw from.

And still pay into my current pension
 
There’s no imputed distribution regime for an ARF until you reach 61, so that’s fine.

In terms of accessing legacy occupational pensions at age 50 and still contributing to one that’s linked to your current employment (or to a PRSA), that’s fine.
 
Gordon Gekko said:
There’s no imputed distribution regime for an ARF until you reach 61, so that’s fine.

In terms of accessing legacy occupational pensions at age 50 and still contributing to one that’s linked to your current employment (or to a PRSA), that’s fine.
Click to expand...

Many thanks for this. Outcome is even better that I thought as I can still defer tax on the 75% element provided I don’t draw down any income. Seems like a reasonable idea to pay off debt with a tax free lump sum and stick the rest in an ARF.

Nearly seems to good to be true which suggests I must be missing something..
 
You can claim tax relief on payments into a pension fund against earned income, so as long as you have a job you should be OK
 
Cameo said:
Many thanks for this. Outcome is even better that I thought as I can still defer tax on the 75% element provided I don’t draw down any income. Seems like a reasonable idea to pay off debt with a tax free lump sum and stick the rest in an ARF.

Nearly seems to good to be true which suggests I must be missing something..
Click to expand...

No, you're not. It is as Gordon said.


Steven
www.bluewaterfp.ie
 
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