# Maximum Pension Contribution



## vjoc (6 Oct 2012)

I trying to work out my maximum pension contribution for 2011. I'm 42, so the relevent limit is 25%, however I'm not quite sure what income the limit relates to. I'm a member of my employer's non-contributory defined benefit scheme.

As a PAYE employee is it 25% of my gross earnings before or after a €12,700 deduction made to an approved share scheme?

I also have the following taxable non-PAYE income: share options, dividends, deposit interest and some commissions. Does this income come within the 25% contribution rule?

Thanks in advance.


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## Conan (7 Oct 2012)

Your limit is gross PAYE income I.e. basic salary + commission. Deposit interest is not included. Share options can be included in the year they are exercised ( as they are generally taxed as PAYE). However there is an overall income limit of E115,000 . So your max personal contribution is 25% of 115,000. The €12,700 is ignored.


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## vjoc (25 Oct 2012)

Thanks Conan.

AVC sorted. 

Am I correct in thinking there is no PRSI/USC rebate on AVCs for 2011? 
(i.e. only 41% tax relief available)

Cheers


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## Paddylast (30 Oct 2012)

*Single payment AVC*

Hope my post is appropriate for tagging along here. 
I want to make a single payment into my AVCs for the 2010 tax year to use up my full 40% of salary  given my age.  

When calculating the 40% I have taken the gross PAYE e.g. 40,000 x 40% = €160000 minus the AVCs already paid in over the year €10,000 leaving a balance of €6000 which I could make in a single payment.   Is this correct way to calculate or do I need to take into account other pension payments besides weekly AVCs?

Thanks.


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## LDFerguson (31 Oct 2012)

vjoc said:


> Thanks Conan.
> 
> AVC sorted.
> 
> ...


 
Yes.


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## LDFerguson (31 Oct 2012)

Paddylast said:


> Hope my post is appropriate for tagging along here.
> I want to make a single payment into my AVCs for the 2010 tax year to use up my full 40% of salary given my age.
> 
> When calculating the 40% I have taken the gross PAYE e.g. 40,000 x 40% = €160000 minus the AVCs already paid in over the year €10,000 leaving a balance of €6000 which I could make in a single payment. Is this correct way to calculate or do I need to take into account other pension payments besides weekly AVCs?
> ...


 
I presume you mean the 2011 tax year and €16,000.

You need to take into account both existing AVCs and personal (employee) contributions to the pension scheme.


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