Using the AVC PRSA to max your tax free lump sum is clearly the most tax effective (tax relief on contributions but taking value as a tax fee amount). So you need to work out what tax free amount you will get from your public service pension.
The Revenue Max is 150% of Final Salary ( base salary + overtime + bik etc), but you scheme may only base your lump sum on basic salary and your actual service. So you need to estimate the likely difference between what your scheme will pay and what the Revenue max will be. Using the AVC fund to bridge the gap is very tax effective.
But if the AVC fund exceeds the difference in lump sums, then any excess will have to be invested into an ARF or taken as a taxable income.
So it probably makes sense to try to get the AVC fund up to the desired value and not much beyond.
Where do you get that from? I was under the impression that the funds in the ARF remained intact and untaxed until drawn down?...the balance after the tax free lump sum which turns into an Arf has to have tax deducted monthly ( lower rate if not working) before I get it ... If I follow you correctly.
If you invest into an ARF the capital grows tax free but any income drawn down is liable to tax at your rate of tax. You must draw down a minimum of 4% pa but you can draw down as much as you want.r
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