Was there any announcement about the €2m pension cap being increased?

[Brendan Burgess]

Didn't hear it.

Maybe it's in some document.

 

[ClubMan]

Don't think so but wasn't it already announced?

Plans for Standard Fund Threshold to rise to €2.8m

The Government has announced plans to increase the amount of money high earners can have in their pension pot without facing a significant tax bill.

www.rte.ie

 

[Fortune]

Most of the pension changes are usually in the Finance bill/act rather than in the budget speech over the years

 

[Dr Strangelove]

Most of the pension changes are usually in the Finance bill/act rather than in the budget speech over the years

May not have wished to flag it in the speech for political reasons.

 

[Booter]

No need really as there's no change to the SFT for 2025

 

[Bill90.]

Most of the pension changes are usually in the Finance bill/act rather than in the budget speech over the years

Do you know if there's any talks of changing the current funding rules for limited companies?.

 

[Zenith63]

Do you know if there's any talks of changing the current funding rules for limited companies?.

From memory the PRSA/BIK change you're referring to just appeared quietly in the Finance Bill, if there is to be a reversal/change I imagine it will appear just as quietly when we see the Bill in the coming days.

 

[ClubMan]

Do you know if there's any talks of changing the current funding rules for limited companies?.

There have been rumours that they're going to close off the unlimited PRSA contributions "loophole" but only time and the Finance Bill will tell if there is any substance to such rumours.

 

[Okokokoknic]

thejournal.ie had a pre-budget opinion piece by David Quinn of Nexiō, suggesting there would be changes, while linking to the old IT article from May.
Fingers crossed he is wrong on this!

Employer Contributions to PRSA

In the 2022 Finance Act, the Benefits in kind (BIK) charge on employer contributions was removed. This allowed employers to make large contributions to Personal Retirement Savings Accounts (PRSAs) without the same funding restrictions that applied to traditional occupational schemes.

This was a hugely beneficial change for company directors and key employees to make significant contributions to their pension fund. It seemed too good to be true, and it looks like that is the case, as Revenue is believed to be actively reviewing it. We therefore expect that there will be changes to this to closely align it with traditional occupational schemes.

Where’s the opportunity, you ask? Well, if you have a business then you should look to take advantage of this prior to the end of 2024 and make contributions where the cashflow in the business allows.

While many will be dealing with rising costs and inflation, it is so important to plan for your retirement and a key part of succession planning is ensuring you have adequate funds to replace your income post-working life.