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Any options in this situation?

Comments

  • #2
    coylemj
    Registered Users, Registered Users 2 Posts: 25,776 ✭✭✭✭coylemj


    Can you run those numbers by us again - you say you are withdrawing 35K to complete a rebuild and that will leave you with 110K. Have you factored tax (PAYE) into that calculation?

    You are liable for PAYE at your marginal rate on any withdrawal from an ARF. If you are still working and your marginal rate of PAYE is currently 40% then, in order to get 35,000 cash into your hand, you would need to withdraw 58,333 from the ARF.

    Even if you had no other income and were liable to pay PAYE at 20%, to get a net 35K would require you to withdraw 43,750 from the ARF and (in 2024), that transaction alone would push you into the 40% band as the 20% band is currently 42K.



  • #3
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,904 ✭✭✭The J Stands for Jay


    https://www.boards.ie/discussion/comment/122815532#Comment_122815532

    You can set up a personal pension or a PRSA to take the place of the pension scheme you are maturing



  • #4
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,949 Mod ✭✭✭✭Henry Ford III


    https://www.boards.ie/discussion/comment/122817042#Comment_122817042

    Pension claim value €145k. Tax free cash €35k. ARF €110k.

    Simple.



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