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 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.