PRSA (Irish Life)

[daleboyrodney]

I,m taking a career break for one year. I have about 4 thousand euro set aside to start a PRSA. Should i lodge this straight off and pay small monthly payments as well or should I just use this money to pay sustantial monthly instalments.

 

[Brendan Burgess]

You should only pay into a pension scheme if you are going to get tax relief at the top rate.

If you are taking the career break from October to October, you may be on the top tax rate this year and have no tax liability next year. If so, then you should make a lump sum contribution this year instead of next.

Brendan