Individuals who have made additional voluntary contributions (AVCs) to their occupational pension scheme can now take a once-off early withdrawal of up to 30% of their AVC fund. Any such withdrawal will be subject to income tax at the individual’s marginal rate but will be exempt from the universal social charge and PRSI.
An individual who wishes to exercise this option has until 26 March 2016 to instruct the trustees/administrator of his AVC fund to make a transfer to him.
Trustees/administrators who receive such a request should be mindful of the following:
- Whether they have the power to make such a transfer under the scheme’s trust deed and rules
- Their obligation to deduct income tax from the withdrawal
- Their record keeping and reporting obligations under Irish tax legislation