Making pension contribution but not currently employed

[lindae1]

Hi there,

I recently left my job and am currently out of work. I have a DC pension still "parked" with my former employer. I don't know at this stage when I'll find a new job.
I have a lump sum (€10k) that i would like to invest as an AVC (and obtain the relevant tax relief against my 2007 earnings). I know that I can't make an AVC to my former pension.
Is there any other way i can do this ?

Thanks.

 

[shaking]

There are limits to the amount you can pay into a pension and obtain tax relief depending on your age and salary. There are two options open to you with the 10k, if you didn't use your full allowance for last year you have until the 31st October to pay it into a pension plan and claim back the tax against last years earnings. If you used your full allowance last year but you have earnings for this year and haven't contributed the max you can pay it in and claim it back against this years earnings.

Hope that makes sense!

 

[ClubMan]

You can make contributions while not employed but if you are paying little or not tax then the tax benefits are significantly reduced or non existent. However you can carry such contributions forward to future and eventually backdate claims for tax/PRSI relief if you want.

 

[lindae1]

Thanks for your replies both.
I'm aware of the max AVC limits with regards to age and I would be able to put in an additional €10k against my 2007 limit. However my real problem is the fact that i'm not currently employed and therefore I'm not an active member of a present pension scheme (i'm considered a deferred member of my previous employer's scheme and as i understand it I'm not permitted to make any further AVC contributions to that pension).
How can i make an AVC contribution is such circumstances ?

 

[ClubMan]

You cannot contribute to the occupational pension scheme once you are no longer employed there. You could open a PRSA or RAC (personal pension plan) if you want to make a pension contribution now.