Single Contribution Pension and SUSI grant

[aparent]

Our first child will be going to college next year. We are approx €5000 over the limit to get the special rate of the grant, as you can imagine funds very are tight. I think that pension contributions are deducted from reckonable income, so can we make a single contribution of €5000 now and have it counted against this tax year? If so, what is the easiest way to go about it, and what are the key steps? Thanks for your help.

 

[ClubMan]

I think that pension contributions are deducted from reckonable income

Correct.

so can we make a single contribution of €5000 now and have it counted against this tax year?

Yes, but you might want to make sure that you don't go over your annual age related pension tax exemption thresholds.

If so, what is the easiest way to go about it, and what are the key steps? Thanks for your help.

Make a top-up payment to your existing pension(s)?
If you don't have one then maybe open a low charges PRSA with an execution only broker.

 

[irbx]

I believe you are right but will let someone else answer to confirm. But also check the working family payment as well as Pension contributions are also removed from the gross income for its calculation as well.

SUSI Income

How does income affect my eligibility for a grant?

www.susi.ie

Further deductions can be made, as follows:​

• in respect of income from employment, employment-related expenses as approved by Revenue.
• maintenance payments made under a legally enforceable arrangement to a separated spouse, as approved by Revenue.
• contributions to pension schemes and pension or retirement products, paid in the reference period only, within the limits allowed by Revenue.
• overtime payments earned in the reference period that are not recurring payments.
• expenses claimed under the Travel and Accommodation Scheme for student nurses and midwives on mandatory, supernumerary clinical practice placements, as well as the meal allowance of €500 payable to supernumerary nursing and midwifery students in years 1 to 3 of their course.
• income up to a maximum of €14,000 in respect of Rent a Room Relief, earned in the reference period only and declared to the Revenue Commissioner.

SUSI may be able to confirm the amounts of these payments directly with Revenue on your behalf, however we will request documentary evidence from you where necessary, such as payslips or a letter from your employer.

The interesting thing is overtime can get excluded it not recurring payment ( not sure how they define that) and €14k to rent out room in your home . Make sure your child is working partime is only working during school holidays as they can get this secluded as well. But any weekend during the school term count as income.

 

[Towger]

Susi work on the actual year the pension contribution was made, while Revenue will let you allocate the pension to the previous tax year.