# Pension AVC



## alpine (26 Oct 2009)

I am a PAYE employee participating in a defined contribution scheme and maxed out my AVC contribiution for 2008 (based on basic salary).  

I also had some non PAYE additional income for 2008 (preliminary tax paid).  I am about to file a Form 11 via ROS but was wondering if I could also make an pension contribution based on this?  If so, would it be 20% and would that be on the Gross or Net income?

Thanks in advance for any responses.


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## LDFerguson (27 Oct 2009)

Assuming that your PAYE salary is not close to the ceiling for 2008 of €275,239 you can contribute 20% of your non PAYE additional income to a separate PRSA or Personal Pension (RAC).  I'm also assuming that you're in your 30s, hence 20% and that the non-PAYE income in question is earned income as distinct from investment (e.g. rents, dividends).   It's 20% of the gross amount, i.e. the amount on which you'd be calculating the tax.  You have until 16th November as you're using ROS.  

Liam D. Ferguson


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## alpine (30 Oct 2009)

Thanks for the response Liam, much appreciated.


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## Anfear (23 Nov 2009)

As long as the non-PAYE income is not investment or rental income (can't pension) ?


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## LDFerguson (24 Nov 2009)

Anfear said:


> As long as the non-PAYE income is not investment or rental income (can't pension) ?


 
That's right - see my original reply - "I'm also assuming that you're in your 30s, hence 20% and that the non-PAYE income in question is earned income as distinct from investment (e.g. rents, dividends)."

Investment income is not pensionable.


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