Are you maximising your pension contributions?
Tax relief is available on personal contributions made to pension plans, making them an incredibly efficient way of reducing your taxable income. The amount of net relevant earnings/remuneration on which tax relief can be claimed is €115,000.
The maximum contribution rate (including both AVCs (Additional Voluntary Contributions) and ordinary personal contributions) on which you can receive income tax relief is determined by your age as follows:
These limits apply only to personal pension contributions. Employer pension contributions can be paid in addition to further enhance your overall retirement funding.
Have you taken advantage of full tax relief for 2023?
If you have not yet used the full income tax relief available for the 2023 tax year, you can do so by making an Additional Voluntary Contribution by 31st October 2024 (or 14th November 2024 if you make an online tax return) and claiming income tax relief directly from the Revenue Commissioners.
Please note that this year Revenue have updated their requirements for making your tax submissions online and members are required to upload a copy of their pension certificate to move through the online application process. Please take this into account when sending AVCs near the online assessment deadline date (14th November 2024) and allow time for the pension certificate to be issued by your pension provider.
At Unio Employee Benefits, we are happy to work with our clients to help provide solutions to help bridge these potential gaps for their scheme members. Contact your client manager directly or get in touch at enquiries@unio.ie