My mother (age 73 next birthday) has obtained the proceeds from her SSIA.
She's eligible to invest €7500 of this in a PRSA and obtain the Government contribution of €2500.
My question is what happens when she turns 75.
How can she encash the PRSA in a tax tree manner?
25% of the PRSA's value can be taken as a tax-free lump sum.
What tax would be payable on the remaining 75%?
Is there any way to reduce the tax due?
[ My mother is current receiving the non-Contributory state pension. Circa €170 per week.
My father has the Contributory state pension and a small pension from his old job. ]
Thanks
Ste
She's eligible to invest €7500 of this in a PRSA and obtain the Government contribution of €2500.
My question is what happens when she turns 75.
How can she encash the PRSA in a tax tree manner?
25% of the PRSA's value can be taken as a tax-free lump sum.
What tax would be payable on the remaining 75%?
Is there any way to reduce the tax due?
[ My mother is current receiving the non-Contributory state pension. Circa €170 per week.
My father has the Contributory state pension and a small pension from his old job. ]
Thanks
Ste