Pension Statement

Just a followup, on avcs is it you can only take 25% of the fund tax free which totally changes my perspective if true. I was under impression from reading revenues site up to 200k tax free and 20% tax up to 500k but they are the total figures so i would need essentially 800k in avs to take 200k tax free? Really is not well laid out the guidelines anywhere. Also didn't know until an hour ago i will pay income tax on my occupational pension.

Does anybody know way avcs lump sums are taxed if its only lumpsum im taking from my pensions. Seeing conflicting info.

Is it 200k tax free then20% to 500k or is it max 25% of avc fund is tax free?

So to take 200k tax free from my avcs I'd need to have 800k in the fund? Say Im in situation of 160k salary, I could take 200k from my avcs as it would be 1.5 times salary then rest of avcs say 300k would be taxed at 20%

Sorry I'm a bit slow this morning. Would the remainder of the avcs not be taxed at 20% up to 500k. That was my hope, if not ill scale back the avcs.

If a person here knows why not ask? It's a discussion forum.

Yeah cheers for info. I won't be taking any lump sum from pension just avcs. So anything after I take my max lump sum is taxed at the highest rate? Oh I get it I can't take rest as cash I have to take arf or similar.

The revenue site is not as clear as you think, hence why I'm asking here.

It was the bit about the level of tax after my lump sum I was not getting. I get it now that any money after my lump sum will be taxed at my marginal rate. I have talked to lot lads at work and they also thought any money left after lump sum over 200k was taxed at 20% up to 500k and now I know that is not the case.

Alex retired on 31 January 2023 and is paid a retirement lump sum of €800,000. This

is the first such lump sum they have received. They are chargeable to tax as follows:

 the first €200,000 is exempt,

 the next €300,000 is taxed under Case IV of Schedule D at the standard rate

in force in 2023 (20% - tax due on this portion of the lump sum = €60,000),

and

 the balance, i.e. €300,000, is taxed under Schedule E at their marginal rate in

2023 – assuming their marginal rate was the higher rate of 40%, the tax due

on this portion of the lump sum is €120,000.

 Total tax due on the lump sum: €60,000 + €120,000 = €180,000.

If Alex receives any future retirement lump sum, it will be subject to tax under

Schedule E at their marginal rate in the year it is paid.

Above from revenue, I was right originally it seems. If I have 500k in my avcs pot, 200k taxfree and next 300k taxed at 20%. No need to scale back contributions so as 20% better then paying 40% If I didn't contribute. Them links are crystal clear, I had not seen them before. No need for financial adviser after all.

I'm only talking about avcs. My pension care scheme I'm leaving to just weekly income, I will not be taking any lump sum from it. My badly phrased question was all about if I have 500k in my avc pot and I'm not taking any money from any other fund.

OK I do need advice so. Thought by looking at them examples and not taking any lump sum from my pension only my avcs it was clear, 1.5 times my salary up to 200k tax free from avc pot and 20% on any cash left in avcs up to 500k. I didn't think my occupational pension mattered with regards my tax on avcs if I wasn't taking any lump sum from the occupational pension. The revenue example,e is not 100% clear as it mentions nothing about that guys occupational pension hence mine and others confusion.

Them revenue examples should have notes on them pointing out if this and that is applicable including as you pointed about occupational pensions. Them ex amples are meaninglessness as is.

Fair enough,thought when taking lump sum from just avcs, the occupational pension didn't come into the tax of avcs. I'll get advice this year at some stage so.