MegConfused
Registered User
- Messages
- 3
Following a cancer diagnosis, I was on unpaid sick leave from my employment from December 2013. Since then I have been in receipt of income from an Income Continuance Plan with New Ireland. This plan does not make any pension scheme contributions until one has been in receipt of plan benefits for two years (i.e. Dec 2015)
I had made an AVC Single Premium contribution in respect of 2013, but was informed that I would not be entitled to any tax relief for AVCs for subsequent years as I was not in receipt of salary. This seemed rather unfair as it precluded me from providing for my pension for that two year period, though the payments being received from New Ireland were fully taxable and were merely replacing my employment salary.
I resumed work on a part-time trial basis in late Oct 2015, however it hasn't worked out I am now obliged to take Early Retirement on the grounds of ill health. I have approximately 18 years of service with my current employer and a further 11 years in one of the former health boards. I had wanted to make a last minute AVC but think I will only be able to avail of minimal tax relief. My gross salary for 2015 was €3,402 and my salary to end of Mar 2016 will be €4,944.
I am 54 years of age and will be entitled to receive payments under my insurance plan until I am 60. Someone mentioned that tax relief could possibly be carried back for tax purposes for up to 10 years in limited circumstances.
Queries
1. What are the possiblities in terms of tax relief for the AVC and would Revenue consider allowing the AVC to be offset against my Income Continuance Plan income, due to the circumstances?
2. I have been told that my salary for pension purposes will be that of the pre Public Sector cuts - can the AVC tax relief be based on the appropriate proportion of this salary rather than the actual salary received?
3. I made a single premium AVC contribution in respect of 2013 to Irish Life through Cornmarket. Is it possible to do a PRSA with another company now and get the appropriate tax relief, as the Cornmarket fees are quite substantial?
Any help would be greatly appreciated!
I had made an AVC Single Premium contribution in respect of 2013, but was informed that I would not be entitled to any tax relief for AVCs for subsequent years as I was not in receipt of salary. This seemed rather unfair as it precluded me from providing for my pension for that two year period, though the payments being received from New Ireland were fully taxable and were merely replacing my employment salary.
I resumed work on a part-time trial basis in late Oct 2015, however it hasn't worked out I am now obliged to take Early Retirement on the grounds of ill health. I have approximately 18 years of service with my current employer and a further 11 years in one of the former health boards. I had wanted to make a last minute AVC but think I will only be able to avail of minimal tax relief. My gross salary for 2015 was €3,402 and my salary to end of Mar 2016 will be €4,944.
I am 54 years of age and will be entitled to receive payments under my insurance plan until I am 60. Someone mentioned that tax relief could possibly be carried back for tax purposes for up to 10 years in limited circumstances.
Queries
1. What are the possiblities in terms of tax relief for the AVC and would Revenue consider allowing the AVC to be offset against my Income Continuance Plan income, due to the circumstances?
2. I have been told that my salary for pension purposes will be that of the pre Public Sector cuts - can the AVC tax relief be based on the appropriate proportion of this salary rather than the actual salary received?
3. I made a single premium AVC contribution in respect of 2013 to Irish Life through Cornmarket. Is it possible to do a PRSA with another company now and get the appropriate tax relief, as the Cornmarket fees are quite substantial?
Any help would be greatly appreciated!