AVC - Lump Sum - Calculation Check

S

SerenaZ

Registered User
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I have never done an AVC lump sum before. I have a couple of questions in this regard.

I used the Mercer calculator which is here.

I am not sure if I filled it correctly.
- For EDS earnings I put in my prior year gross income from my Employment Detail Summary.
- For "current standard band" - I input in €40,000 as per the single band on the Revenue.ie website.
- For "ordinary contributions" - I input what I paid in non-AVC non-company contributions last year.

Is the above correct?

The result I get is:
- €20k can still be paid in tax free.
- €16k is the amount of tax relief I might get.

I guess the €20k relates to the maximum AVC lump sum contribution that I can make for the prior year?

What does the €16k relate to? Does that mean that I can get up to €16k*20% back from the Revenue? Why would I not get this on the full €20k?

Thanks.
 
I am in my 40's and qualify for 25% max relief.

My income for last year was aprox. €100k.

What I am confused about:
- How is the tax relief calculated? Is it 40% of the lump sum provided the lump sum is under 25% of my gross income for the prior year less other AVCS less personal contributions?
- And why does the Mercer calculator give a different figure for the amount that still can be paid in tax free (20k) and the amount of "tax relief you might get" (16k)? What does 16k tax relief mean - is it the portion of the lump sum that would get 40% tax back on?

Thank you.
 
@SerenaZ
Ah, we should both have read the big warning!

If you download the form, and then open in Acrobat reader it calculates correctly.
 
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