What deductions included in pension tax limit?

R

rjt

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Am a teacher considering options for my own prsa. Firstly I need to know what deductions from my paycheck count towards my pension contribution tax relief limit?
Obviously my grouped pension and widows and orphans. Pretty sure my pension related deductions do too? What about salary protection?
I'm 37 so current max rate is 20%
Grouped & widows and orphans is 5.3%
When pension related deductions included total is 12.7%
Total including salary protection is 13.8%
No current avc

So in short my question is what percentage may I now contribute to maximise tax relief?
(P's I'm going to set up my own prsa not cornet! )
Thanks in advance
 
rjt said:
Am a teacher considering options for my own prsa. Firstly I need to know what deductions from my paycheck count towards my pension contribution tax relief limit?
Obviously my grouped pension and widows and orphans. Pretty sure my pension related deductions do too? What about salary protection?
I'm 37 so current max rate is 20%
Grouped & widows and orphans is 5.3%
When pension related deductions included total is 12.7%
Total including salary protection is 13.8%
No current avc

So in short my question is what percentage may I now contribute to maximise tax relief?
(P's I'm going to set up my own prsa not cornet! )
Thanks in advance
Click to expand...

Cornmarket :D

Isn't your normal pension 5% plus 1.5% Widow's & Oprhans? Which would leave 13.5% of gross salary that can be contributed.

Income Protection does not count when calculating the figure.

Make sure it's a PRSA AVC plan. You aren't eligible to contribute to a PRSA (The PRSA AVC is for people already in group schemes, the PRSA is for people not in group schemes).


Steven
www.bluewaterfp.ie
 
Cheers-flipping auto text
my substantial pension related deduction is included in my pre tax deductions, which is why I assume it included in my 20% pension contributions limit.maybe I'm mistaken?
yes it's avc prsa I'm looking at, maybe level 5 with zurich eg "dynamic" still at tentative research stage.
 
The pension levy that you have taken from your salary doesn't count when calculating how much you can put into AVC's, just the basic one and Widows and Oprhans.

The Dynamic fund isn't a bad fund, but is 100% equities. When there is a stock market crash, 100% of your fund will fall in value. You may consider some diversification. The Active Fixed Income is a very good bond fund, have a mix of that or Dynamic? Or the Performance fund is a ready made bond & equity fund.


Steven
www.bluewaterfp.ie
 
Cheers again. Food for thought. Didnt realise could have multiple funds with avc prsa.Much more reading to do!
 
SBarrett said:
The Dynamic fund isn't a bad fund, but is 100% equities. When there is a stock market crash, 100% of your fund will fall in value. You may consider some diversification. The Active Fixed Income is a very good bond fund, have a mix of that or Dynamic? Or the Performance fund is a ready made bond & equity fund.
Click to expand...

Not wanting to go off topic, but...I am thinking about rebalancing the Zurich PRSA AVC from default cash to something more aggressive. I am thinking about 9 years to retirement but maybe a year or two earlier. Would you mind outlining the options with Zurich? I realise I can ask Z and read the documents but...:eek:

The PRSA is a top up to main occ. pension scheme which will provide a decent pension in itself.
 
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think i'm going to bite the bullet and sort this out next week too. like rjt i'm not going with cornmarket so is it easy to ring up someplace like zurich and set it up?? and do they sort out the tax credits for me??
 
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