Klopp to it
Registered User
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Personal pensions, PRSA's, Buy Out Bonds and retained benefits are all paid out tax free.
What happens AVCs? I presume that they are paid out tax-free?
I presume that Retained Benefits is the value of a pension fund from an old employer which has not been converted to a Buy Out Bond or transferred to my current employer.
What happens if I transfer the value of my old pension fund to my current employer?
Do not transfer a DC scheme to another DC scheme
You can receive the old DC scheme completely tax-free if you die.
(This post is about Defined Contribution Schemes so I won't worry about people in DB schemes.)
Pensions schemes are treated more favourably than ARFs so you should consider deferring taking an ARF as long as possible
It is better to die with a pension scheme than with an ARF.
If you have a terminal illness, max your pension contributions
You get tax relief at either 20% or 40% and your beneficiaries get it tax-free (subject to CAT)
If you are a member of an occupational pension scheme, they get a lump sum of up to 4 times salary plus the value of any personal contributions directly tax free. Any remainder is used to purchase an annuity. If the value of the pension is less than 4 times salary, the full amount is paid tax free.
If you have old work pensions, the full amount is paid tax free.
If you have a PRSA or a personal pension, the full amount is paid tax free.
If part of a scheme, it is under trust and the trustees will decide where the money goes, so it is not subject to CAT.
Sorry about previous post and I've given up trying to work out how to quote when in edit!! Anyway,......
Where a lump sum of 4 times salary is payable, then retained/preserved death benefits from employer sponsored DC schemes do need to be taken into account. See Death Benefits section of Revenue Pensions manual for more detail but of specific note is that legacy lump sum benefits from previous occupational schemes must be taken into account whereas legacy PRSAs/personal pensions do not! Go figure! Some really mad stuff in all of this......like you can ignore legacy benefits from previous occupational schemes if the lump sum from the current employer is 2 x Salary!! Honest!
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