AVC question - How do you make a lump sum payment for the previous year?

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help999

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How do you make a lump sum avc payment for the previous year
I'm allowed to contribute 20% in total, 6% employee pension contribution and i have only paid avcs to the value of 5% in 2021

How do i make a lump some of the remaining allowance of 9%.
It comes out of my salary and into mercer.
I don't have a physical way to actually pay into it separately.
If i want to change the percentage i log on to an online system and i can change it there for the amount going forward, but how do i actually add a lumpsum for the year before?

Thanks
 
help999 said:
How do you make a lump sum avc payment for the previous year
I'm allowed to contribute 20% in total, 6% employee pension contribution and i have only paid avcs to the value of 5% in 2021

How do i make a lump some of the remaining allowance of 9%.
It comes out of my salary and into mercer.
I don't have a physical way to actually pay into it separately.
If i want to change the percentage i log on to an online system and i can change it there for the amount going forward, but how do i actually add a lumpsum for the year before?

Thanks
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If you contact Mercer directly, they will send you an AVC form for 2021. You fill out with the amount you want to pay in AVCs plus your bank details and they will transfer the money for you.

They then send you a receipt for the payment and you can submit that to Revenue in order to get the tax refund.

Beware that the AVC cut-off for 2021 is the end of this month though, so best to get on it quick
 
Gthyre said:
Beware that the AVC cut-off for 2021 is the end of this month though, so best to get on it quick
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Just to be clear, you'll have to have made the topup payment and submitted the tax refund claim by the end of the month in order to be able to claim tax relief against 2021 earnings.
 
For 2021, if you are submitting Form 11 , I do not think the AVC deadline is end of this month.

================

Contributions paid to a PRSA for AVC purposes​

Tax relief for PRSA AVCs is based on the appropriate age-related percentage limit of the income from the employment in question. (As reduced by any employee contributions to the pension scheme relating to the employment).

You may pay a once-off or special pension contribution after the end of a tax year , but before the following 31 October. If you do, you can choose, on or before 31 October, to have the tax relief for the contributions allowed in the earlier tax year. When you use the Revenue Online Service (ROS), the deadlines for paying contributions and making this choice are extended .

Tax relief for pension contributions

This page outlines the tax relief for pension contributions
revenue.ie revenue.ie
 
help999 said:
How do you make a lump sum avc payment for the previous year
Click to expand...

This is the link we received from Mercer for making AVC lumpsums.

It includes a worksheet so that you can calculate the max lump sum that you can make based on your age.

It also includes instructions on making an EFT transfer to Mercers Client account and the CDD requirements that you need to provide. This can all be submitted by email.

linktr.ee

Once-off pension contributions | Linktree

Your pension plan: powered by Mercer Aspire
linktr.ee linktr.ee
 
Reick said:
For 2021, if you are submitting Form 11 , I do not think the AVC deadline is end of this month.

================

Contributions paid to a PRSA for AVC purposes​

Tax relief for PRSA AVCs is based on the appropriate age-related percentage limit of the income from the employment in question. (As reduced by any employee contributions to the pension scheme relating to the employment).

You may pay a once-off or special pension contribution after the end of a tax year , but before the following 31 October. If you do, you can choose, on or before 31 October, to have the tax relief for the contributions allowed in the earlier tax year. When you use the Revenue Online Service (ROS), the deadlines for paying contributions and making this choice are extended .

Tax relief for pension contributions

This page outlines the tax relief for pension contributions
revenue.ie revenue.ie
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There's nothing in the original post to suggest that the original poster is self-assessed. Quite the opposite in fact. But even if they were self-assessed, your post still suggests that the deadline is the end of the month. Unless you're referring to the extended (16th November?) extension for online form 11 returns?
 
Yes, that is what I am referring to. Online return using the revenue online service. The text is copied directly from revenue website.
 
Reick said:
Yes, that is what I am referring to. Online return using the revenue online service. The text is copied directly from revenue website.
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That's only for an online self-assessed return though.
If, as seems likely from the first post, they're not self-assessed, then it's irrelevant.
 
Am I right in thinking that if you make an AVC for the previous year then you would effectively get tax back if you paid it now out of savings (ie previously saved earnings)?
 
David_Dublin said:
Am I right in thinking that if you make an AVC for the previous year then you would effectively get tax back if you paid it now out of savings (ie previously saved earnings)?
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That is correct. By making a payment for the previous year, Revenue will reassess/balance the previous year and you will get a tax refund.
 
Buddyboy said:
That is correct. By making a payment for the previous year, Revenue will reassess/balance the previous year and you will get a tax refund.
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So are you paying the top up from your after tax pay and then receiving a tax refund?
 
Are there any restrictions around varying your monthly contributions from salary? As in, could you up your payments for a few months towards end of year if you were in a position to do so? Obviously a bit of a headache for payroll.
 
David_Dublin said:
Are there any restrictions around varying your monthly contributions from salary? As in, could you up your payments for a few months towards end of year if you were in a position to do so? Obviously a bit of a headache for payroll.
Click to expand...
You can do that if you want and if payroll can facilitate it, which they should with adequate notice
 
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