AVC and severance payment

andy391

Registered User
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Hello,

Does anyone know if the taxable portion of severance payment can be counted toward the limit for AVC contribution while I'm still an employee?

E.g.: The last day of work is 1 April this year, and I don't plan to find a job/take a break until 2026. Assuming the gross amount earned as of final work day is 50k euro with the taxable portion of the severance payment to be 20k euro, does this 20k euro bring up the taxable earning to 70k euro for the purpose of calculating AVC contribution limit?

Thank you!
 
Does anyone know if the taxable portion of severance payment can be counted toward the limit for AVC contribution while I'm still an employee?

According to revenue.ie, regarding termination payments:

"If you make a termination payment to your employee, you may have to deduct tax from a portion of this payment. This portion should not be included in their pay when calculating the limit for relief for pension contributions."
 
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