Executive Pension - General confusion

dewsbury

Hi,
I have a new executive pension.
I want to maximise tax relief.
I am director of my one-man company.

How much can my company put into my executive pension?
How much can I (as employee) put into my executive pension? Or indeed, can I also put money into my PRSA? The motive is tax relief.


Is there any website that explains this stuff properly? Any book?
I have already spoken to my so-called advisor....but it remain unclear about these questions.

padraig.od

You should probably get a better advisor.

silver2020

Depends on your age & salary and what you hope to put in.

If its a decent amount, you can look at an ssap - self administered pension. You can buy property though these and rent and and value increase are exempt from tax, (property and management of it can have no connection to you) You can also buy into individual shares and funds. However its about €2,000 a year admin cost, so you need to be looking at 100k+ in it fairly quickly.

Otherwise, if you are the director of the company, just pay yourself x and let the company make all the pension contributions for you and buy into a fund such as Zurich prisma funds

The J Stands for Jay

silver2020 wrote: »

Depends on your age & salary and what you hope to put in.

If its a decent amount, you can look at an ssap - self administered pension. You can buy property though these and rent and and value increase are exempt from tax, (property and management of it can have no connection to you) You can also buy into individual shares and funds. However its about €2,000 a year admin cost, so you need to be looking at 100k+ in it fairly quickly.

Otherwise, if you are the director of the company, just pay yourself x and let the company make all the pension contributions for you and buy into a fund such as Zurich prisma funds

You can do this through some executive pensions without having to set up a ssap and employ a pensioneer trustee

The J Stands for Jay

dewsbury wrote: »

Hi,
I have a new executive pension.
I want to maximise tax relief.
I am director of my one-man company.

How much can my company put into my executive pension?
How much can I (as employee) put into my executive pension? Or indeed, can I also put money into my PRSA? The motive is tax relief.


Is there any website that explains this stuff properly? Any book?
I have already spoken to my so-called advisor....but it remain unclear about these questions.

The maximum employer contribution is a function of your salary and your expected service to retirement age. The easiest way to figure this out may be to ask the pension provider for a maximum funding quote.

The maximum employer contribution is a percentage of your salary, which increases with age.

The one piece of advice I will give is to make sure you pay yourself a salary every year, no matter how small and no matter how unprofitable the business is. Of you weren't paid a salary on a tax year, that year won't count towards the maximum benefits payable at the end.

colm_c

An executive pension plan is a form of occupational pension, albeit for one person.

This means, the employer can put in any amount, there are no limits for tax relief.

An employee can contribute, but only up to their tax cut off, which depends on your age.

I have a similar setup.

In your situation, I would just make contributions as the employer.

Who did you get your EPP from, they really should have talked you through this. Your accountant should also be able to advise.