Transferring Irish Pension while still making contributions to it from Ireland

[Skippy1]

Hi Andrew and all other POI contributors who may be able to assist

 

I have been following your threads on here and find you seem to give a very balanced view which is appreciated by everybody, thank you for your time

I have a slightly different situation maybe

 

I am unsure as to how/should I transfer my fund (Single member defined Contribution Scheme) from Ireland to a Suitable Approved Super Fund in AU, and how the monthly employer and employee payments that would continue to be paid by my employer would be dealt with as these will continue to be paid on a monthly basis from Ireland till I (50Year old) reach retirement age at 65. We are moving to Australia on a PR Visa

How will/Can my employer pay these contributions into a Australia Super Fund on a monthly basis from Ireland. Is this just a case of transferring the money on a monthly base using a suitable FX company to get the best rate of exchange or are there tax implications of some sort on these monthly payments or can any tax implication be mitigated in some way. I am unsure how the monthly employer and employee payments that would continue to be paid by my employer would be dealt with as these will continue to be paid on a monthly basis till I reach retirement age at 65.

How will/Can my employer pay these contributions into a Australia Super Fund on a monthly basis from Ireland. Is this just a case of transferring the money on a monthly base using a suitable FX company to get the best rate of exchange or are there tax implications of some sort on these monthly payments or can any tax implication be mitigated in some way.

Or do i have to leave the fund in Ireland and not waste any more time thinking of this.

Am i correct in the understanding that Pension drawdown in Australia is tax free and you can drawdown up to 100% and invest as you wish at retirement age of 65

 

If you can give some guidance it would be very much appreciated to try to help navigate this in advance of actually moving. I understand we dont have to move a fund immediately and the 15% implications on growth on funds if not moved within 6 months. But we are not in a huge hurry with it but how this would be dealt with could/will influence our decisions

 

Many thanks in advance for any recommendation/suggestions you could make

Edited May 14, 2013 by Skippy1

[Andrew from Vista Financial]

Hi Skippy1

 

Contributions paid by an employer here in Australia are generally done via the payroll system and paid directly to the super fund which are then taxed concessionally.

 

With regards to whether an international employer is able to do this and the tax implications involved for yourself and or your employer unfortunately I am unable to comment as this seems to fall into the realms of international taxation.

 

Therefore might I suggest that you contact Alan Collett a member on here also whom I am sure you will have noticed around the forum, he is qualified to deal with this area.

 

With regards to moving a Pension, you are absolutely right, there is no rush to do this and when eventually a Pension is transferred after the 6 month period any tax applicable can generally be met concessionally from within the fund at a rate of 15%.

 

Also with regards to accessing Superannuation monies in Australia, if someone is over age 60 and retired then generally any income is tax-free and access to 100% is allowable (potentially subject to restrictions for overseas monies within certain timeframes).

 

I hope this helps answer some of your questions, sorry I am not able to cover it all off for you.

 

Regards

 

Andy