Guys
Chargeable excess tax is levied at 40%. Finance Act 2014 reduced it in line with the top rate of income tax.
The threshold is effectively €2.15m because there's credit for the €60k tax on a €500k lump sum against the chargeable excess tax liability of €60k on a chargeable excess of €150k.
What about PRSI?
Termination of employment - taxable portion of any lump sum
- Subject to marginal rate tax and USC only
[This is consistent with the link provided by Sophrosyne and IT21 provided by Landlord - and probably explains the key confusion?]
Thanks Gordon I don't need any "clearance" to do this?Okay. In this case, you can actually have your cake and eat it. Give up the right to a future lump sum from the pension scheme. Pocket your €50k. Then move your preserved benefit (i.e. what you've got in the pension scheme) to a PRSA (you can do this because you've less than 15 years service). Your pension assets then lose the characteristics of the old occupational scheme and you can get your tax free lump sum at retirement.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?