Low Irish pension pot can we get the lump sum

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Bronte

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My husband has an company pension (in Ireland) that will pay out about 1K a year when he is 65. It's about 30K in total. Is there any way to get the 30K instead of having a drip feed later. And if it's possible is this tax free or a waste of time.

Any other details I can supply if needed to answer the question because I'm unsure what is needed.
 
The payout needs to be €330 pa or less for the trivial pension rules to apply .
[broken link removed]
 
If I remember correctly, you are not Irish Tax resident? Do you plan to remain so?

The tax treatment will generally be dictated by the country where you are tax resident (assuming there's a double taxation agreement with Ireland) which might change some of the rules about what you can do.

Does he have a pension where you are currently resident?
 
If after taking his tax free lump sum the balance is less than €20,000 he should be able to take the balance of taxable lump sum. To maximise his tax free lump sum ensure he has details of highest earnings in 10 years prior to when he left.
 
We are non resident for tax, though we do pay tax in Ireland on our rental income. We plan to stay non resident. We believe he will be able to get a state pension here in two years. Based on his Irish pension and his pension entitlements here, another EU country. Plus he will have a company pension later as well.

What does it mean about the 10 years prior to when he left. Yes we know how much he was earning.

What amount is the tax free lymp sum?
 
The 20k rule only applies if that's the total of ALL his pension arrangements.

Stephen provides a good summary of it: https://www.bluewaterfp.ie/pensions-2/trivial-pensions/

However, the rules are based on Irish Revenue rules.

The tax treatment will be determined by where you are, not here.

To simplify things for yourselves, he could look at transfering his Irish pension to where you are now, and combining his pension arrangements?
 
His salary at time of leaving, years service, when he left and his age. He may be able to draw down all or sum of it as a lump sum or be able to utilise the trivial pension route.

The ARF option would be difficult as the Revenue brought in a rule regarding non residents and the draw down of ARs (here). Haven't had to apply it in practice yet. I can see life companies refusing to do it as it's too much hassle for them.


Steven
www.bluewaterfp.ie
 
Would that be salary when he finished in Ireland, which was low, or salary when he finished work nearly two decades later (high). He will I think meet the income ceiling threshold of 12,800 (13k) I think, around age 62, this is being calculated right now by the pension body here, and they have written to Ireland to liaise with them as both countries PRSI records (stamps) are relevant and basically he will have two state pensions. If he doesn't meet the 13 k limit he certainly will when the company pension kicks in at 65. If we ever get to see it.

I wonder would the rental income count for the above purposes of the 13k.

I'll phone the pension holder and see what they say because Steven who is an expert in this area thinks the pension companies won't want to waste their time with a trivial amount.
 
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vague summary

20 years Ireland full class A PRSI
20 years another EU country
5 years unemployed but this is counted, because it's not Ireland he gets paid (unemployment) as well and it's not means tested on me or our assets. ( you can see why we won't be coming home anytime soon)

30 k lump sum in Irish pension pot, defined benefit, solid old style excellent trustee type
X in the same type of pension but in EU country that will pay out at age 65

Entitled to state pension from Ireland
Plus another EU state pension, ( based not on a certain figure but on your final salaries as far as I can understand it, the pension office said it would take 3 months to get the details from Ireland before they can confirm the figures for both countries.)

For anyone that wants I telephoned the Irish state pension office and sent them an email and got our full PRSI records after about a week.
 
Bronte

It's the salary he was on when he finished his employment that's connected to his pension. It is then indexed forward to get today's value. Proof of earnings has to be provided too, which can be difficult, a call to the Revenue may be required.

PRSI contributions etc are completely irrelevant with regards to the draw down of his private pension.


Steven
www.bluewaterfp.ie
 
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