PRSA question

pacelut

Hi all,

Is the employer contribution included in the tax relief on the PRSA contributions? For example, I am in 30-39 years age bracket, I put 15% on my PRSA and the employer add 8%, so the total contribution to my PRSA is 23% of my earnings. Should I reduce my own contribution to 12% to have a total of 20%?

Merowig

http://www.pensionsauthority.ie/en/Publications/Information_Booklets/PRSAs_-_a_consumer_and_employers'_guide.pdf
Page 23 and page 24

Does an employer get tax relief on any contributions they make to an employee’s PRSA?
Yes, contributions paid by employers are fully deductible for corporation tax purposes. Contributions paid by the employer are treated as a benefit-in-kind. Employees are entitled to income tax relief on these contributions subject to the limits on the relief outlined above, but there is no relief in respect of PRSI and the Universal Social Charge.

and http://www.revenue.ie/en/practitioner/ebrief/archive/2011/no-362011.html

So yes you get only tax relief up to the total combined contribution of 20%

Oddly if your employer had an occupational scheme instead of a PRSA - the employer contribution to that one wouldn't count towards the total percentage.