PRSA Cancel

S

stef_nz

Guest
Hi

I have been paying into a company PRSA for 18 months is there anyway to cancel and get any of the money back?

Thanks
 
I don't think so other than in certain cases of inability to work due to illness/disability (leading to effective early retirement).

Update: from the Pensions Board's [broken link removed]:

 
The whole point of PRSAs was to increase flexibility but looks like the '2 year rule' associated with Occupational Pensions was lost.
I think there is a watered down version which states that if there are no contributions for more than 2 years and the fund is valued at less than €1000, the provider can cancel the PRSA and send you the proceeds. This might be in the Ts & Cs of your PRSA so worth having a look.
 
Abbeykiller said:
The whole point of PRSAs was to increase flexibility but looks like the '2 year rule' associated with Occupational Pensions was lost. .
Click to expand...
But isn't that rule open to abuse? For example a 41% taxpayer makes contributions for less than two years and gets tax (41%) and PRSI/health levy (4% + 2%) relief and then withdraws from the scheme at pays only 25% (?) on the proceeds? Obviously they also lose any employer contributions too. I think that this stategy was mentioned before by somebody. Is it legal? Is it illegal tax avoidance? Is it tax evasion?
 
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