Maximum Pension Contribution for Proprietary Director

feartheclaw

Hi all
I am 42 and the director of my own limited company. Is the maximum pension contribution paid by my company greater than the normal 25% for someone of my age? I won't be making any employee contributions.

I have a dormant executive pension from previous employer so intend to start a new one and transfer retained benefits into it. So what is the limit for company contributions in the above scenario?

On a related issue if I take a salary of €60,000 and the company contributes €15,000 to pension is my final salary then considered to be €75,000 and taxed accoringly or is it seen as separate?
Thanks
ftc

Alan152

Hi Feartheclaw

A company can contribute much higher amounts based on a maximum funding calculator. There is a capitalisation factor table that is based on your age and the calc works out at 2/3 of your salary x cap factor which for example could be 25 so that works out at €1m over the next 23 years to nra so you could contribute 43k per annum for the next 23 years and the company gets corporation relief on this contribution. 2/3 x €60k =€40k x 25 =€1m divided by years to nra.

Figures are rough worked and you need to take into account your retained beneifts also, you need to get a professional advisor to do the figures exactly based on the capitalisation table.

Also the €15k you pay from the company to the pension is not considered salary for tax purposes. The reliefs are generous for a limited company when it comes to max funding a pension for an executive.

Henry Ford III

Maximum funding rates are very high. Likely to be well in excess of 100% of salary.