Irish Life websites
Top
Follow

Tax-free lump sum

At retirement everybody has the option of taking a tax-free lump sum. Most people take the maximum amount allowed under this option. The level of tax-free lump sum you can take will depend on the type of pension plan you have and your personal circumstances.

The overall tax-free cash from all your pension arrangements can't be more than €200,000. Any lump sum payment over this limit will be taxed at the standard rate of tax up to a limit of €500,000, as of January 2014.

The maximum allowable pension fund for tax purposes you can have is €2 million (as at January 2014) from all sources. If you have pension funds over this amount, it may affect the tax you pay and you should consult your Financial Advisor.

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

0 Comments

Please sign in to leave a comment.