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Pension Age related limits and Employer Contributions

  • 11-05-2022 9:48pm
    #1
    Higgsy
    Registered Users, Registered Users 2 Posts: 139 ✭✭


    Hi,

    I have searched revenue.ie but I am unable to get a definitive answer on if employer contributions to a Defined Contribution pension scheme count towards the age related limit for pension contributions for a PAYE worker.

    I am about to start a job with an Irish company. I am between 40 and 50 years old so my contribution limit into my pension is 25% based on what I have found.

    My future employer is willing to pay 10% into my pension. Does this mean that the limit I can contribute is 15% (25% limit - 10% employer contribution = 15% I can contribute before I reach the limit)

    Or

    Does the employer contribution not count towards the 25% limit, and this means I can contribute 25% on top of the 10% my employer is willing to contribute?

    Any help or advice would be appreciated.

    Thanks



Comments

  • #2
    CP05
    Registered Users Posts: 15 ✭CP05


    Yes 15%, if it's a prsa



  • #3
    Happyhouse22
    Registered Users Posts: 499 ✭✭Happyhouse22


    The answer is that it depends on the type of pension.

    If it is an occupational pension (probably) then the employer contribution does not count towards the limit and you can contribute 25% on top of the employer contribution.

    However if it is a PRSA then the employer contribution does count - and you will only be allowed contribute another 15%.


    Most big companies offer an occupational scheme but some may only offer a PRSA - the best way to find out which yours is to just ask the pensions operator.



  • #4
    Higgsy
    Registered Users, Registered Users 2 Posts: 139 ✭✭Higgsy


    https://www.boards.ie/discussion/comment/119048856#Comment_119048856

    Thanks for the response @Happyhouse22.

    That is now clear.



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