Further extension to Revenue concession on personal pension and PRSA policyholders over age 75
Due to Covid restrictions, Revenue gave a concession on personal pensions and PRSAs for policyholders reaching age 75. These clients had until 30th September 2021 to take their retirement benefits, before their plans become vested and frozen. This concession has been extended to 31st January 2022.
In addition, Revenue has clarified that had an imputed distribution been due on a PRSA solely because the client had reached age 75, this requirement will not apply in 2021 (as was also the case in 2020).
Please note that the imputed distribution requirement continues to apply as normal on PRSAs which have become vested for other reasons. This means that the imputed distribution requirement continues to apply on the majority of vested-PRSA, as these will have become vested due to a client taking their retirement lump sum.
The imputed distribution requirement does not apply to vested-personal pensions (vested-RACs) in any event.
The reason for these concessions is that Revenue recognises that this is a particularly vulnerable group of customers and, due to medical guidance, they may be unable to meet their adviser and complete their claim documentation at the current time.