KeenToLearn
Registered User
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- 9
Hello,
I have a query about how I should manage my pension contributions from my limited company. I am currently the only employee of my professional services limited company. This is a standard arrangement in my industry.
I have 2 Pensions currently setup. Pension 1 is a PRSA I setup before I started the limited company and its value is approximately €100,000, all employee contributions at the time. I am aware of the allowable Employee pension contribution limits and bands per age.
I have not contributed to the PRSA since I setup Pension 2. Pension 2 is a 1 person Master Trust setup through the limited company. The value is approximately €94,000, made up of both Employer and Employee contributions.
When I complete the max funding calculation for the Master Trust, the max Employer contribution value allowable from the ltd company yearly is €33,200. I have no capacity for special contributions as my limited company is only 3 years old.
This year, I want to make an Employer contribution to a pension of €50,000 from the ltd company, which is over the allowable ordinary contribution I can make to the Master trust pension.
What are my contribution options in this case?
I am assuming that I should not exceed max funding calculation of €33,200 to the Master trust.
I am aware that there have been recent changes to how PRSA Employer contributions are treated. With these changes in mind, Can I use my existing personal PRSA to contribute the excess pension contributions of €16,800 directly from my ltd company and the full amount of 50K be treated as a Business Expense in the company year end accounts?
As there issues with the ltd company contributing to 2 separate pensions on my behalf in the same company year?
I have a query about how I should manage my pension contributions from my limited company. I am currently the only employee of my professional services limited company. This is a standard arrangement in my industry.
I have 2 Pensions currently setup. Pension 1 is a PRSA I setup before I started the limited company and its value is approximately €100,000, all employee contributions at the time. I am aware of the allowable Employee pension contribution limits and bands per age.
I have not contributed to the PRSA since I setup Pension 2. Pension 2 is a 1 person Master Trust setup through the limited company. The value is approximately €94,000, made up of both Employer and Employee contributions.
When I complete the max funding calculation for the Master Trust, the max Employer contribution value allowable from the ltd company yearly is €33,200. I have no capacity for special contributions as my limited company is only 3 years old.
This year, I want to make an Employer contribution to a pension of €50,000 from the ltd company, which is over the allowable ordinary contribution I can make to the Master trust pension.
What are my contribution options in this case?
I am assuming that I should not exceed max funding calculation of €33,200 to the Master trust.
I am aware that there have been recent changes to how PRSA Employer contributions are treated. With these changes in mind, Can I use my existing personal PRSA to contribute the excess pension contributions of €16,800 directly from my ltd company and the full amount of 50K be treated as a Business Expense in the company year end accounts?
As there issues with the ltd company contributing to 2 separate pensions on my behalf in the same company year?