You get one go at the lump sum from your pension. If you have multiple policies, you can draw down your lump sum at multiple times. If you have one policy, you get one go at the lump sum.Two questions
- Can you take numerous tax free lump sums up to the max? i.e. could I take out 80k in 2 years to pay off some of the mortgage? And then leave the rest in the BOB until age 61? At which point my understanding is imputed distribution kicks in.
- Looks like the TFLS from 200k to 500k is taxed at only 20%. Do "most people" take that withdrawal, or is it complex to work out when this would be advantageous? Presume it is to do with minimising tax while ensuring you have income to support lifestyle.
Everyone takes the maximum lump sum and pays 20% tax if over €200,000. Otherwise, the remainder will most likely be liable to income tax at 20% plus USC and PRSI if withdrawn before age 65.