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PRSA Question

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  • 17-09-2012 6:48pm
    #1
    bbam
    Closed Accounts Posts: 7,410 ✭✭✭


    Hi..
    just a quick question and probably a crazy one..
    Can I start PRSA accounts for my children??
    What is the minimum age they can be opened at??

    Thanks..


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    #2
    Liam D Ferguson
    Registered Users Posts: 542 ✭✭✭Liam D Ferguson


    It's something I have considered doing for my own two kids in years to come. I spend so much time telling others of the wonders of compound interest that it seems like a no-brainer to me and I'd hope that they'd continue the good habit when they have a few bob.

    The kids have to be 18 to enter into such a contract with most of the PRSA providers I've seen.

    Be aware that you cannot claim tax relief yourself on PRSA contributions you make for your children. Only they can. In effect you would be giving them a gift of the annual contribution (so make sure it's under the gift tax exemption limit, currently €3,000 per year) and they're making the PRSA contribution themselves. If they're not in paid employment initially, they can store up the tax relief and claim it later when they're paying tax.


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