Minimum Salary for PRSA Employer Contribution

GSheehy said:

The ethical matter is makey-uppy salaries for makey-uppy employees on the advice of an intermediary and the provider then knowingly processing the business. There's no ethical dilemma on the limit of employer contributions for bona fide employees.

The analysis is no different to what any of the product providers have published. There were a few indirect questions about the makey-uppy employees/salaries at a few of the PRSA presentations (they were seen, no doubt, by some intermediaries (who all have PI) as a 'sales idea') but the grey/non-commital answers given by the providers should have been enough to put it out of mind.

Gerard

www.prsa.ie

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The matter of excessive remuneration is covered in detail in the analysis and the risk that in the final analysis Revenue may take a different view is clearly flagged

I’m not advising anyone to do or not do something here. I’m setting out an analysis of the facts of the matter

Marc said:

If you are anonymous there is no accountability in the real world for your opinions

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If you think people use professional expertise to say insightful things under their real names spend five minutes on LinkedIn.

Another important consideration that is lost in the bickering is that there are few genuine tax efficient wrappers available in Ireland.

A PRSA has some very valuable characteristics which enable otherwise complex tax matters to be kicked down the road for decades.

If I make an employer contribution to my PRSA I have a gross roll up vehicle for the rest of my life no personal income tax on dividends or rents, no capital gains tax on disposals no exit tax and deemed distributions to account for.

I can retire it from age 50 with planning and split it into different segments to access funds at different times.

I am not required to retire benefits until age 75 and when I do I am entitled to a tax efficient lump sum payment with the balance of income distributions taxable under income tax rates which are progressive and only apply to imputed distributions taken. The balance of the account remains in a gross roll up environment.

On death payment pre retirement is return of fund tax free to a spouse or civil partner with no excess tax above the SFT post retirement to spouse or civil partner for the rest of their lives and then 30% inheritance tax rate in the hands of adult beneficiaries .

So what if I don’t get a 12.5% deduction on the way in