Executive v Personal Pension-Which is more tax efficient?

T

TENSHI

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If I have a >5% director and my company can afford it which is the most tax efficient option
1)Company pays €20,000 into an executive pension plan for Director or
2)Increase salary of director by €20,000 and director pays €20,000 into personal pension plan
Thanks
 
Re: Which is more tax efficient?

The individual would need to have sufficient total income to support a €20,000 Personal Pension contribution. If so, there's no tax advantage of one over the other. However there are differences, e.g. requirement for trustees, different retirement age and options, manual claiming of tax and PRSI relief etc.

Suggest you change the title of this thread to something more meaningful, per posting guidelines.
 
Re: Which is more tax efficient?

Thanks LDFerguson, appreciate the response
 
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