silverfox23
New Member
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- 3
Wanted to find out if anyone knew if its possible to open a PRSA pension for a child (newborn)?
I get that there would be no tax relief as the child does not have earnings.
But you would get around deemed disposal, its a good place to stick the €3k small gift exemption each year and even when they turn 18 money is effectively locked away until they retire.
For a cost of €54k to the parent (3k a year for 18 years) the child (with no additional contributions) would end up with a pension pot well over €1m at the age of 66 assuming 6% growth per year.
Its too good to be true so I'm guessing its not possible.
I get that there would be no tax relief as the child does not have earnings.
But you would get around deemed disposal, its a good place to stick the €3k small gift exemption each year and even when they turn 18 money is effectively locked away until they retire.
For a cost of €54k to the parent (3k a year for 18 years) the child (with no additional contributions) would end up with a pension pot well over €1m at the age of 66 assuming 6% growth per year.
Its too good to be true so I'm guessing its not possible.