Starting a PRSA but want to work abroad...

[gWell]

Hi,

I have been contracting in IT for the last year and would like to start a PRSA as I feel I should be making the most of the tax benefits I can get.

I am a company director so I am hoping I can make a lump sum payment into the PRSA and claim all the tax relief in one go.

However, I have a few questions and would be very grateful for any advice/opinions...

1) What is the max I can contribute to the PRSA?

2) I am thinking of moving to Australia for a year so can I put the PRSA on hold or pay a small amount into it while I am away to keep it ticking over? I would like to start it back up when I get back.. Is this possible? I have read http://www.askaboutmoney.com/showthread.php?t=6370&highlight=country and this does not appear to be the case. However, I feel that I should still go ahead with the PRSA to utilize my tax benefits for 2006.

3) Is there any other alternatives that you think I should look at?

Thanks in advance for any help. Its hard to know what to do so suggestions are greatly appreciated.

G

 

[F. Kruger]

For you personally, the max(for tax relief purposes) depends on your age and your income. The Company is a different story, but there are restrictions on Single Premiums for tax relief purposes especially where there is no corresponding regular annual contribtion.