Can i cancel and take money from my PRSA

Gumbo

i currently have a PRSA with AIB.
i also pay into my employers pension scheme with is a local authority pension.

i would think that the PRSA is overkill but i opened it 5 years ago without thinking.

i know i can cancel the PRSA, but can i withdraw the funds even if it costs me to do so?

thanks.

Hi,

Is it an AVC PRSA?

Did you start it before your local authority employment?

Gumbo

Deleted User wrote: »

Hi,

Is it an AVC PRSA?

Did you start it before your local authority employment?

i will check to see if its an AVC PRSA.

and yes i started it while in private employment.

Gumbo

just found out its not an AVC PRSA, its a straight forward PRSA

just found out also that AIB allow me to transfer the money into my LA pension, and my employer has said that i can do this no problem, but it wont buy me a notational year.

i will be only 37 years of service into my company if i retire at 65 instead of the recommended 40 years.

The correct procedure would have been to change the PRSA to an AVC PRSA when you joined the LA pension scheme. You should probably get some advice from AIB on this.

The exception to this would be where you had a second source of income and the PRSA contributions were in respect of that income.

Gumbo

Deleted User wrote: »

The correct procedure would have been to change the PRSA to an AVC PRSA when you joined the LA pension scheme. You should probably get some advice from AIB on this.

The exception to this would be where you had a second source of income and the PRSA contributions were in respect of that income.

will mention that to my AIB advisor. what is an AVC PRSA if you dont mind me asking?

You would use an AVC (additional voluntary contribution) PRSA where you wanted to make extra payments to an occupational pension scheme ie your LA pension.

If you have had just one source of income since you joined the local authority, technically you would not be eligible to claim tax and prsi relief on the PRSA contributions unless it was designated an AVC PRSA.

jkforde

Hi

Can I piggyback on this post...

I've a non-standard PRSA with Zurich since 2006 (one part lump-sum and one part monthly). What would be the penalties in cancelling the PRSA as I am thinking to use the funds to purchase property now. Or would it be better to reduce my monthly contributions to the minimum until I can pay in again at a sustainable rate.

I've searched elsewhere for info on the consequences of cancelling a PRSA but couldn't find anything.

Thanks for any info.