Maybe this can be a key post or pls let me know if this is already covered?
What are the key elements to consider if there is the potential for severance, I have listed a few things below:
What are the key elements to consider if there is the potential for severance, I have listed a few things below:
- AVCs - need to pay before leaving employment. There might not be paid employment before the end of the calendar year. This might mean making an AVC on things like bonus, RSU vests, BIK items that were previously not being included to calculate the 115k limit as monthly AVC on base salary covered it previously. Make sure to consider timing of payment to pension company in terms of cash available, physical payment, transfer limits etc.
- Any insurances that will lapse - is there any potential to bring forward or prepay any procedures/treatment plans to allow for claiming before they lapse on leaving employment.
- Consider any lapses in health insurance coverage in terms of the waiting periods (13 weeks at present) and Lifetime Community Rating (bearing in mind credits for periods of unemployment)
- PRJB - apply on first day of unemployment. Check public services log in is working. If period of unemployment is around the usual time spent outside Ireland on holidays, understand how this works for claiming period and any holiday concessions (currently 2 weeks notice/2 weeks holiday)
- If jointly assessed, check if it makes sense to reassign tax credits to max cashflow - take into account the taxable nature of PRJB as this might use the tax credits
- Consider whether life assurance needs to be upped as any provided by employer will lapse
- Familarise yourself with taxation on any severance payments and how to max the tax free portion
- If intending to take some time out of the workforce in eg education, familiarise yourself with application deadlines, any funding opportunities or retraining options like Springboard