Get Up to 40% Tax Relief on Pension Savings
The deadline to pay in pension contributions and claim relief on your 2022 income tax is October 31st. This can be done with a once off payment known as an Additional Voluntary Contribution (AVC) through the following pension plans:
- Personal Retirement Savings Accounts (PRSAs)
- Retirement Annuity Contracts (RACs)
- Pan-European Personal Pensions (PEPP)
- Occupational pension schemes
- Qualifying overseas plans
These contributions are subject to 2 main limits:
- Total earnings limits. There is a cap of €115,000 on your maximum annual earnings. This does not include employer contributions.
- Age related earnings percentage limits. This limit is to reflect the amount of years left in a person’s working life and give them the best opportunity to build a pension pot that will sustain them through retirement.
The following outlines the age limits and the corresponding percentage of earnings you can contribute in that year.
How to Claim Tax Relief
If your employer does not deduct your contribution directly from your pay, simply login to your MyAccount through Revenue.ie. Here you will be required to upload your AVC certificate. If your AVC certificate is not available at the time of submitting your claim, you may draft a document which contains the following information:
- Date of payment
- Total amount paid
- Type of pension (e.g. PRSA AVC)
- Policy number (if available)
- Name and address of the customer
- Name and address of the policy provider
*Please note this content is the view of the author and not of Independent Trustee Company