More than one PRSA?

As far as I know it is. However you may be restricted to contributing to a maximum of one or at least receiving tax/PRSI relief on a maximum of one at any time. What specific scenario are you thinking of in relation to having more than one PRSA?

Update: this extract from [broken link removed] certainly suggests that an individual can have more than one PRSA but it doesn't deal with any terms & conditions that may apply:
(b), may, either on the member's changing employment or on the scheme being wound up, be transferred to one or more than one PRSA to which that member is the contributor if the following conditions are satisfied, that is to say—
Click to expand...
 
The restrictions are on the tax relief available, not on the number or amount saved. Although whether you would want to save more than the tax relief limits would depend on personal circumstances.
 
I have a PRSA with charges of 1%+5%. There are PRASs around with 1%+0% charges so I was thinking of stopping payments into the PRSA I have set up and setting up another one with only 1% management pa and no other charges.
 
In which case it might still make sense to transfer your original 5%/1% PRSA into the new 0%/1% one since there will be no gain or loss on charges as a result and it will be easier to administer. Of course you might want to diversify across different providers and their funds by keeping them separate.
 
I didn’t think it was possible to transfer to a 1%+0% PRSA since the pension I have is set up as 1%+5% but I’ll enquire with the insurance company.

Thank you for your replies
 
There is no obvious reason why this should not be possible. Why did you think that it might not be?
 
jpd said:
The restrictions are on the tax relief available, not on the number or amount saved. Although whether you would want to save more than the tax relief limits would depend on personal circumstances.
Click to expand...

Was looking at another thread recently which said that legally your pension cannot equal more 2/3 of your final salary? Fair enough in the public sector but surely your pension can be whatever you want to put in?
 
As far as I know there are also funding limits on "private" pension schemes. Not sure if they are the same for "public" pension schemes.
 
ClubMan said:
As far as I know there are also funding limits on "private" pension schemes. Not sure if they are the same for "public" pension schemes.
Click to expand...

I think your fund can't exceed €5 million but wasn't aware of any restriction on aiming to make your pension equal to your final salary?
 
Oh - maybe that's it. Did a quick scan of the Pension Board's PRSA booklet and saw nothing about the 2/3rds final salary rule which is listed in their occupational scheme booklet.
 
There are actually various different limits with different implications

The Revenue allow you to take up to 2/3rds of your final renumeration (which has a number of definitions). It also allows various features on that pension such as spouses pension, overlap and pension increases to be maxed out. In terms of purchasing an annuity to buy such a pension your probably talking about a fund requirement of at least 30 times your pension i.e. if your final renumeration was 75k then you would be allowed a max pension of €50k per annum which would be the equivalent of a pension fund of €1.5m

The €5million cap referred to is not a cap on the size of fund you cna build up rather a limit on the tax effectiveness of a fund above the cap. If you had a fund of €6m on retiremetn then you would be required to pay tax on the difference between your fund (€6m) and the cap (€5m) at retiremetn i.e. a tax bill of €410k and then you would pay tax on the resulting pension. Effectively you get hit with double tax and therefore negates the tax advantages of saving above the Cap.

Your talking about a very big pension if you were coming close to the cap. Also note the Cap increases each year.
 
Yeah - I read the funding limits terms & conditions of a buy out bond/pension retirement bond that I have (having transferred one occupational fund into another and then the lot into the BOB/PRB) last night and could hardly understand any of the many funding limit conditions! :eek:
 
You must log in or register to reply here.
Back
Top