newirishman
Registered User
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Fine, thanks for more accurately describing the technicalities. The wording on the Revenue side is not really straightforward.increased/standard exemption and SCSB are three different calculations. Waiving right to tax free lump sum is something else.
they can ask for the SCSB calc with and without the waiving of the tax free lump sum. You don’t waive SCSB relief.
Take the higher payment and transfer the pension to a PRSA and the waived right disappears. They can then get the tax free lump sum from their pension in the future as well as the enhanced payment now.
Steven
www.bluewaterfp.ie
It is a loophole. And until the Revenue close it, there is no issue in using it. You may have to have a cert of comparison carried out. This costs €1,230 but getting a future tax free lump sum will make it worth it.Hi Steven, are there any downsides to waiving the rights and transferring to a PRSA after the fact? Such as the PRSA provider being the same as the Occupational Scheme provider. Seems like a loophole!
What circumstances would you not waive the lump sum (assuming >10 years to retirement)?
Thanks,
It is a loophole. And until the Revenue close it, there is no issue in using it. You may have to have a cert of comparison carried out. This costs €1,230 but getting a future tax free lump sum will make it worth it.
you always have to look at the figures and make the decision based on what they are. Also, personal circumstances may have a baring. I do not have a list of circumstances when you do or don't.
Steven
www.bluewaterfp.ie
As the proceeds are coming from a work related pension, yes you canCan you retire a PRSA at age 50, get 25% tax free lump sum and then the rest in an ARF too?
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