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Private pension funds for the self-employed

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  • 03-03-2007 10:12pm
    #1
    lola_run
    Closed Accounts Posts: 311 ✭✭


    I’m self-employed and having read that so few people know about the 20% tax relief available on private pensions and the best time to start making contributions to one of these is before 30, I’m quite eager to start a pension (called RAC –Retirement Annuity Contracts) this year.

    Is there anyone here in a similar position? I’d be able to pay a maximum of €200 per month in contributions. My questions are:

    1/ Which financial institutions offer the best deals?

    2/ Can I choose a pension provider in another EU country and still claim tax relief in Ireland?

    3/ Where can I get exact details on how much tax relief is available?

    By the way, do the self-employed also have access to the state pension at 65?


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    #2
    ircoha
    Closed Accounts Posts: 2,290 ✭✭✭ircoha


    lola_run wrote:
    I’m self-employed and having read that so few people know about the 20% tax relief available on private pensions and the best time to start making contributions to one of these is before 30, I’m quite eager to start a pension (called RAC –Retirement Annuity Contracts) this year.

    Is there anyone here in a similar position? I’d be able to pay a maximum of €200 per month in contributions. My questions are:

    1/ Which financial institutions offer the best deals? ask pensions board

    2/ Can I choose a pension provider in another EU country and still claim tax relief in Ireland? check with pensions board

    3/ Where can I get exact details on how much tax relief is available? Revenue.ie

    By the way, do the self-employed also have access to the state pension at 65?No, see social welfare site
    xxx


  • Options
    #3
    Sonnenblumen
    Registered Users Posts: 5,834 ✭✭✭Sonnenblumen


    lola_run wrote:
    I’m self-employed and having read that so few people know about the 20% tax relief available on private pensions and the best time to start making contributions to one of these is before 30, I’m quite eager to start a pension (called RAC –Retirement Annuity Contracts) this year.

    Is there anyone here in a similar position? I’d be able to pay a maximum of €200 per month in contributions. My questions are:

    1/ Which financial institutions offer the best deals?



    2/ Can I choose a pension provider in another EU country and still claim tax relief in Ireland?

    3/ Where can I get exact details on how much tax relief is available?

    By the way, do the self-employed also have access to the state pension at 65?

    Even better if you are a company director but must be limited co. Get co to pay pension contributions which are fully tax deductable (against corporation tax) and you can also make personal contributions thus reducing your PAYE liability. Double win, but gets even better when it comes to retirement and drawing down 25% of total fund tax free.

    Meanwhile a growing pension fund is a great asset for leveraging for additional company funding/development purposes.

    This is a simplified view and there are certain criteria and limits but the opps are fantastic. A good accountant would be very useful in the early planning, but the Bank pension advisers are also excellent. Would recommend Bank of Ireland and/or AIB, but Eagle Star is also a reg top performer.

    Good luck.


  • Options
    #4
    lola_run
    Closed Accounts Posts: 311 ✭✭lola_run


    Sonnenblumen wrote:
    Even better if you are a company director but must be limited co. Get co to pay pension contributions which are fully tax deductable (against corporation tax) and you can also make personal contributions thus reducing your PAYE liability. Double win, but gets even better when it comes to retirement and drawing down 25% of total fund tax free.

    Meanwhile a growing pension fund is a great asset for leveraging for additional company funding/development purposes.

    This is a simplified view and there are certain criteria and limits but the opps are fantastic. A good accountant would be very useful in the early planning, but the Bank pension advisers are also excellent. Would recommend Bank of Ireland and/or AIB, but Eagle Star is also a reg top performer.

    Good luck.

    Well, I don't have a limited company, not yet anyhow. For the moment, I'm enquiring into pensions for the self-employed. If I change to a company structure later, is it complicated to switch pensions?


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