Treatment of Tax Free Lump Sum Overshoot

[joecoie]

If the value of an AVC overshoots the Revenue max Tax Free Lump Sum value, how is the overshoot value treated if the total value of AVC is withdrawn?

Background; SNA in pre-2013 pension scheme; joined in 2010; will have 15.6 years' service at time of retirement in Sept 2026. Looking to start & contribute to an AVC to maximise the TFLS achieved as the pension scheme LS will be lower than the max value allowed by revenue.

 

[Dave Vanian]

The excess can be used to supplement the pension, through an annuity or an Approved Retirement Fund, or can be withdrawn at retirement, taxed as if it was earned income.