Due to COVID-19 lockdown restrictions, Revenue gave a concession on Personal Pensions and PRSAs for policyholders reaching age 75. These clients had until 31st October 2020 to take their retirement benefits before their plans become vested and frozen. This concession has now been extended to 31st March 2021, subject to review in line with medical guidance.
In addition, Revenue has clarified that if an imputed distribution had been due on a PRSA solely because the client reached age 75, this requirement will not apply in 2020.
Please note that the imputed distribution requirement continues to apply as normal on PRSAs that 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 clients, and due to cocooning advice they may not be able to meet their adviser and complete their claim documentation at the current time.