AVC PRSA Question

[JennaFlect]

Can someone clarify in a case where setting up an AVC PRSA mid year for additional contributions outside of the civil service pension scheme. My question is if there is income before this new civil service employment from a previous private sector employment in the same year, is that previous private sector employment income included in the total NRE for calculating the total allowable tax relief for the year? I know you need to specify the employment when making the claim so I'm just not sure if it is limited by that.

So for example:

Previous employment income: €10k
Civil service expected income: €25k

Is the relevant age related tax relief (20%) through the AVC PRSA only based on the €25k or the total NRE of €35k?

There was a PRSA set up with contributions based on the previous employment income but no contributions made to that in the year in question. I guess if the AVC PRSA is only based on the civil service income a once off contribution could be made to that existing PRSA based on the €10k.

 

[Dave Vanian]

The PRSA and the AVC PRSA must be separate. So you'd make a contribution to the older PRSA in respect of the €10,000 income. Then you'd make contributions to the AVC PRSA for the public sector income.

 

[JennaFlect]

The PRSA and the AVC PRSA must be separate. So you'd make a contribution to the older PRSA in respect of the €10,000 income. Then you'd make contributions to the AVC PRSA for the public sector income.

Perfect thanks, thought as much.