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Maximum tax relief on pension contributions

  • 08-01-2021 4:50pm
    #1
    Green Mile
    Registered Users, Registered Users 2 Posts: 498 ✭✭


    Hi,

    Probably a silly question but just wanted clarification if possible.

    I’m in the 30 to 39 year of age bracket so I can receive tax relief on my occupational pension scheme through work so long as I’m contributing 20% of my salary to the pension.

    At the moment, I pay 5% employee, the employer pays 7%. Am I correct I can only pay 8% AVC as this totals to 20% or perhaps the employer continuations aren’t included in the calculations under this Revenue rule?

    Thank you,


Comments

  • #2
    Bubbaclaus
    Registered Users, Registered Users 2 Posts: 4,461 ✭✭✭Bubbaclaus


    Green Mile wrote: »
    Hi,

    Probably a silly question but just wanted clarification if possible.

    I’m in the 30 to 39 year of age bracket so I can receive tax relief on my occupational pension scheme through work so long as I’m contributing 20% of my salary to the pension.

    At the moment, I pay 5% employee, the employer pays 7%. Am I correct I can only pay 8% AVC as this totals to 20% or perhaps the employer continuations aren’t included in the calculations under this Revenue rule?

    Thank you,

    It depends on whether it is a standard occupational pension scheme or something like a PRSA that your company is contributing towards. Employer contributions must be factored in for the limit with a PRSA but not with an occupational scheme.

    In summary: it depends :P


  • #3
    bilbot79
    Registered Users, Registered Users 2 Posts: 2,028 ✭✭✭bilbot79


    Green Mile wrote: »
    Hi,

    Probably a silly question but just wanted clarification if possible.

    I’m in the 30 to 39 year of age bracket so I can receive tax relief on my occupational pension scheme through work so long as I’m contributing 20% of my salary to the pension.

    At the moment, I pay 5% employee, the employer pays 7%. Am I correct I can only pay 8% AVC as this totals to 20% or perhaps the employer continuations aren’t included in the calculations under this Revenue rule?

    Thank you,

    I think you can pay an additional 15% avc. I am maxed out percentage wise on AVCs myself and the employer puts their bit in aswell. It's all working fine. Free money


  • #4
    cefh17
    Registered Users Posts: 990 ✭✭✭cefh17


    bilbot79 wrote: »
    I think you can pay an additional 15% avc. I am maxed out percentage wise on AVCs myself and the employer puts their bit in aswell. It's all working fine. Free money

    And that goes up with time, 15% is up to age 29 (you can actually go up to 20% on 1st January in the year that you turn 30, not after you've turned 30)


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