Executive Pension single premium

H

hutch72

Guest
Hi.

I am a 36 year old married male with a bonus coming my way and I want to set up a pension scheme with my limited company employer paying a premium of €32,000. Will I get the relevant relief ? I have been told 2nd hand that €16,000 will have to be a regular premium with €16,000 as a single premium ? ? This does not make sense to me. Is this case or I'm I at max allowable limits ?
PS - I only have a small paid up pension worth €20K from a previous employer a couple of years ago. Thank you
 
Are you an employee or a director? In the former case the normal age related limits apply for the purposes of tax/PRSI/health levy relief on pension contributions in any one year. You can also make contributions before October 31st in order to claim unused tax relief from the immediately previous tax year. You can always make contributions in excess of the relevant age related tax/PRSI/health levy relief limits but you will not get any relief on the excess. I don't know if different rules apply to directors or other company officers. OASIS summarises the relevant age related tax/PRSI/health levy relief limits:
 
Single premium

I am a director.

My question is though do I have to commit to a regular premium to get tax relief or can I just do a single premium ?

I an getting conflicting opinions.

Thanks
hutch
 
> My question is though do I have to commit to a regular premium to get tax relief or can I just do a single premium ?

In general once off pension contributions qualify for tax/PRSI/health levy relief in respect of the current and/or previous tax year the same way that regular contributions do. Once off contributions can be made without committing to regular contributions. I don't know if any special rules apply to directors or executive pensions.
 
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As a Director you can set up the pension and make a one off contribution. The amount you can contribute depends on quantum of salary, your age, any other pension funds you have. The age related scale of contributions does not apply.

I set up a Executive scheme with Quinn Life and was in the position that I wanted to contribute more that the allowed contribution (based on my paticular circumstances) in my first year. This is where the splitting the contribution between ordinary contribution and special contribution comes in. Revenue rules allow a special contribution up to 100% of the ordinary contribution in year one of the scheme. Call Quinn Life and they will calculate your maximum contributions and tell you over the phone. You don't have to go with them if you have another provider in mind.
 
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