Pensions: PRSAs
PRSAs can allow people who are not members of occupational pension schemes to make tax efficient retirement provisions.
Also, the self-employed have a more liberal arrangement with transferability to Company Pension Schemes and vice versa.
It also provides pension provision for those who are not economically active
Key Features of a PRSA
Employers can contribute
The minimum contributions to a PRSA is €300.00 a year
If payments are made electronically the minimum for each transaction is €6.00
For other methods of payment the minimum is €50.00 per transaction.
Contributions can be suspended and restarted without charge
Maximum contributions on which tax relief can be granted (including any employer contributions) are as follows:
- 0- 30 Years 15%
- 30-39 Years 20%
- 40-49 Years 25%
- 50+ Years 30%
Alternatively a limit of €1,523.69 may be adopted if greater
Flexible retirement age - from age 60 to 70 in current draft
Option to invest in ARF at retirement
Standard PRSA charges are capped at a maximum of 5% of contributions paid and 1% per annum of the fund value
For further information on PRSA's please contact us today.
