Single Contribution Pension and SUSI grant

A

aparent

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Our first child will be going to college next year. We are approx €5000 over the limit to get the special rate of the grant, as you can imagine funds very are tight. I think that pension contributions are deducted from reckonable income, so can we make a single contribution of €5000 now and have it counted against this tax year? If so, what is the easiest way to go about it, and what are the key steps? Thanks for your help.
 
aparent said:
I think that pension contributions are deducted from reckonable income
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Correct.
aparent said:
so can we make a single contribution of €5000 now and have it counted against this tax year?
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Yes, but you might want to make sure that you don't go over your annual age related pension tax exemption thresholds.
aparent said:
If so, what is the easiest way to go about it, and what are the key steps? Thanks for your help.
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Make a top-up payment to your existing pension(s)?
If you don't have one then maybe open a low charges PRSA with an execution only broker.
 
I believe you are right but will let someone else answer to confirm. But also check the working family payment as well as Pension contributions are also removed from the gross income for its calculation as well.


SUSI Income

How does income affect my eligibility for a grant?
www.susi.ie

Further deductions can be made, as follows:​

  • in respect of income from employment, employment-related expenses as approved by Revenue.
  • maintenance payments made under a legally enforceable arrangement to a separated spouse, as approved by Revenue.
  • contributions to pension schemes and pension or retirement products, paid in the reference period only, within the limits allowed by Revenue.
  • overtime payments earned in the reference period that are not recurring payments.
  • expenses claimed under the Travel and Accommodation Scheme for student nurses and midwives on mandatory, supernumerary clinical practice placements, as well as the meal allowance of €500 payable to supernumerary nursing and midwifery students in years 1 to 3 of their course.
  • income up to a maximum of €14,000 in respect of Rent a Room Relief, earned in the reference period only and declared to the Revenue Commissioner.
SUSI may be able to confirm the amounts of these payments directly with Revenue on your behalf, however we will request documentary evidence from you where necessary, such as payslips or a letter from your employer.

The interesting thing is overtime can get excluded it not recurring payment ( not sure how they define that) and €14k to rent out room in your home . Make sure your child is working partime is only working during school holidays as they can get this secluded as well. But any weekend during the school term count as income.
 
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Susi work on the actual year the pension contribution was made, while Revenue will let you allocate the pension to the previous tax year.
 
@ClubMan @irbx @Towger
Thanks for your replies and help and sorry for the delay in saying so (life!!)


I think I need a little help clarifying a few things:

- the deadline to get it all sorted - is it 31/12/24 for child staring in college next September or is there an earlier (October?) deadline?

- What “paperwork” do we need to get to revenue and susi and how to submit it properly?

- The ‘pension product’ itself and who to go through - ‘a low charges PRSA with an execution only broker’ sounds fine. Does anyone have any suggestions / recommendations on who to talk to or what to watch out for?
 
- You need to pay and get tax relief in the last full tax year before you apply to SUSI. Therefore all paperwork must be for 2024 in your case.

-Normally SUSI reference your tax balancing statement and if necessary the date documentation from the company providing the PRSA confirming the date the Pension contribution was made.

-For an execution only broker you won't be getting advice but deciding on the product and charging structure yourself. PRSA.IE and LABROKERS are two I have used personally and had no issues with at various stages. Others are available.
 
Thanks - I'll try them
 
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