U.S. TAX GUIDE IN IRELAND
What’s a PRSA, and why might American expats in Ireland want one? 
A Personal Retirement Savings Account (PRSA) in Ireland is a flexible way to save for your retirement.
For Americans living in Ireland, it’s a great tool to plan for the future while benefiting from Ireland’s tax relief on contributions.
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How does putting money into a PRSA help you as an expat?
When you contribute to a PRSA, it lowers your taxable income in Ireland, which means you pay less tax.
However, just remember, as a US citizen, you’ll still need to report these contributions to the IRS, even if the US doesn’t give the same tax breaks as Ireland.
What happens when you withdraw from your PRSA in retirement?
Once you start taking money out of your PRSA—whether as a lump sum or regular payments—it counts as taxable income in the US, so you’ll need to report it.
Who can open a PRSA, and is it right for you?
Pretty much anyone in Ireland—whether you’re employed, self-employed, or between jobs—can open a PRSA.
It’s a flexible option, especially if you want something you can keep contributing to even if your job situation changes.
What types of PRSAs are there, and what should you know about fees?
There are Standard and Non-Standard PRSAs.
Standard PRSAs have capped fees, which keep costs predictable.
Non-Standard PRSAs offer more investment options but might come with higher fees, so it’s important to weigh your options carefully.
How much can you contribute to a PRSA, and still get tax relief?
While you can contribute as much as you like, the amount eligible for tax relief in Ireland depends on your age.
Younger people can contribute a smaller percentage of their income tax-free, while those 60 or older can contribute a larger percentage.
When can you start using your PRSA funds?
Typically, you can start accessing your PRSA savings when you turn 60.
However, there are some circumstances, like certain health conditions, where you might be able to withdraw funds earlier, from age 50.
How does a PRSA stack up against other retirement options in Ireland?
PRSAs are more flexible than Occupational Pension Schemes, which are tied to your employer. They’re also a solid alternative to Personal Pension Plans, especially if you want more control over your savings.
Is a PRSA a good fit for American expats in Ireland?
A PRSA can be a smart part of your retirement plan, offering flexibility and control over your savings.
However, since the US taxes worldwide income, including PRSA contributions and withdrawals, it’s important to get advice from a tax professional familiar with both US and Irish tax rules.
