Taking tax-free cash is not tax-free if it means you have to pay more tax in the future! *Looking for help with Financial Planning?* I am a Chartered Wealth ...
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The main point is that instead of taking the 25% tax free lump sum at the start, you spread it out over retirement.
Is this a valid strategy in Ireland?
Not really relevant to Ireland. The gist of the video is that by not taking taxable withdrawals you are leaving tax credits on the table. With imputed distributions from ARFs, that's likely already being taken care of.
Also, to adopt this strategy in Ireland would require the splitting of the pension fund into multiple PRSAs. You can only take a tax-free lump sum from a a pension once.
The main point is that instead of taking the 25% tax free lump sum at the start, you spread it out over retirement.
Is this a valid strategy in Ireland?
If you will have retirement earnings below the level of entry into the income tax net, or will have earnings below the 40% tax band you can use an ARF the minimise your tax liability.
You can adjust your ARF drawdowns each year to the maximum of your extra possible earnings up to the level of entry into the tax net or entry into the 40% tax band.
There is no tax advantage of spreading your tax free lump sum over many years.
It is tax free no matter when you decide to take it.