Maximum Pension Contributions for Self Employed

feartheclaw

Registered User
Messages
23
Hi all
I am 42 and the director of my own limited company. Is the maximum pension contribution paid by my company greater than the normal 25% for someone of my age? I won't be making any employee contributions.
Thanks
ftc
 
Technically if you are an Director of a Plc then you are "employed" and not self- employed. As an employee, the Co. can contribute significantly more than 25% of your salary to an "occupational pension scheme". Your personal contributions are limited (for tax relief) depending on age. But you are not required to contribute anything. Any Co. contributions are not treated as as a BIK. So I would suggest setting up a Directors Pension.
 
Technically if you are an Director of a Plc then you are "employed" and not self- employed. As an employee, the Co. can contribute significantly more than 25% of your salary to an "occupational pension scheme". Your personal contributions are limited (for tax relief) depending on age. But you are not required to contribute anything. Any Co. contributions are not treated as as a BIK. So I would suggest setting up a Directors Pension.

Thanks, proprietary director probably better description :) - I have a dormant executive pension from previous employer so intend to start a new one and transfer retained benefits into it. What is the limit for company contributions in the above scenario? On a related issue if I take a salary of €60,000 and the company contributes €15,000 to pension is my final salary then considered to be €75,000 or is it seen as seperate?
 
There are Revenue rules on how much can contributed. How much contributions are required to provide you with the maximum allowable pension at retirement. It takes into consideration your age, retirement age, salary and retained pension benefits and pensionable service.


Steven
www.bluewaterfp.ie
 
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