Key Post Be careful about exceeding the €2.15m lifetime limit on pension fund

Brendan Burgess

Brendan Burgess

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Conan said:
As I stated earlier, for someone currently aged 35 it is pointless worrying about the potential of exceeding the €2.16m. By all means review the numbers within 5 to 7 years of retirement, but hopefully the fund cap will increase over the next 30 years!!!
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Hi Conan

Thanks for clarifying. What if someone is within a year or two of retirement and their fund is say €2m? Do you recommend to them to keep contributing even if it exceeds the €2.16m limit?

What is the effect of exceeding the limit?

Brendan
 
Brendan,
It makes little sense tax wise to contribute to a pension if you are likely to exceed the €2.16m. Why... because firstly you will pay 40% tax on the excess and will still be liable for marginal rate tax on the income drawdown (effectively double tax on the excess).
 
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Brendan,
Did you transfer (and then drop) my other posting in relation to the excess of funds tax?
 
Conan

Whew! I had intended to copy them, but deleted them instead. Fortunately, there is a "revert to original" facility which I was able to recover it from.

I have copied it back to the original post.

Brendan
 
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