Submitting AVC into pension

Fol20

Hey Guys. Let’s say you haven’t submitted anything into your pension for all of 2018, are you able to submit an avc up to your maximum limit to avail of the tax relief by sending them a Cheque or electronic directly to your pension. Likewise would you be able to go back a 2017 also before oct 31 or is that too late.

homer911

You will need to get it in and submit a receipt along with a Form 12/Form 11 by October 31st

Fol20

Is it for 2017 or 2018 year

coylemj

You can still do both years but for any money you are contributing in respect of 2017, send a separate payment. I'd make it a cheque so you can attach a letter stating that it's for 2017 and ask for a receipt. Then submit a tax return for 2017 and you'll get your tax relief back.

For 2018 you can make the contribution up to Oct 31st 2019.

Fol20

Just to add a bit more complexity to it.
i changed jobs this year. I called my current pension provider in my new company and they are unwilling to do an avc for last year as i wasnt with the company and/or with them last year. I tried calling my old pension company who also declined to accept an avc as i no longer work in the older company. Any thought on how to solve this?

Liam D Ferguson

Fol20 wrote: »

Just to add a bit more complexity to it.
i changed jobs this year. I called my current pension provider in my new company and they are unwilling to do an avc for last year as i wasnt with the company and/or with them last year. I tried calling my old pension company who also declined to accept an avc as i no longer work in the older company. Any thought on how to solve this?

Sorry - you can't. You can only make an AVC into a pension scheme while you are actually employed by that company, even if you want to backdate the tax relief into a time when you were employed by them.

Assuming that you had only source of income last year and that was your employment with the old company, you've missed the boat for 2017. If you have the disposable cash, all you can do is get a head start on a contribution for 2018. You have until October/November 2019 to do that but there's nothing stopping you making a contribution in January 2019 and claiming an immediate tax refund.

ANXIOUS

Fol20 wrote: »

Just to add a bit more complexity to it.
i changed jobs this year. I called my current pension provider in my new company and they are unwilling to do an avc for last year as i wasnt with the company and/or with them last year. I tried calling my old pension company who also declined to accept an avc as i no longer work in the older company. Any thought on how to solve this?

Have you still got pension benefits in the old companies scheme?

Fol20

ANXIOUS wrote: »

Have you still got pension benefits in the old companies scheme?

I will be merging them soon. Pity, id say a few k if i could max out my avc. I talk to both insurance companys and as you say, i cant do it.

ANXIOUS

Fol20 wrote: »

I will be merging them soon. Pity, id say a few k if i could max out my avc. I talk to both insurance companys and as you say, i cant do it.

It's probably not going to help you, as it'll take too long to get them to accept it. A good few years ago we had a client who had a few separate pensions from previous employments and not currently in active service with any of them.

One had an extremely low AMC, so he wanted to transfer the rest of them into this one. Long story short we contacted the trustees no can't do it blah blah, we then went to the ombudsman (since replaced by the FSO) made our case to P Kenny found in our favour based on that you can't treat an active or deferred member less favorable.

So if you have the time, energy and money you could make a compliant and you'd probably win.

Fol20

Let’s say I changed jobs at the end of September and the max tax free amount I could contribute over the course of the entire year(including the job I had in the first 9month and the second job in the last 3 months) would be 10k. I didn’t contribute anything into my first job for the first 9months. Does that mean I could max out my avc as a percentage of my current monthly income to bring it to a total of 10k and not be taxed on as it covers the entire year or am I limited to government limit of 20pc per month the government stipulates based on age

Fol20

Hey guys, i have another question, im trying to merge all my pensions from various companys to tidy up my setup. i have a pension with one company where it indicates online it is worth just under 5k however when i request to transfer to my main pension pot, it says the value is only about 2.5k.. Any idea where this figure is. I would have just thought they transfer the current value from pension A to new pension B minus a small amount in admin fees.

Grassey

Were you in the scheme less than 2 years? Depending on the vesting rules you might not be entitled to the ER contributions for transfer.

Fol20

Grassey wrote: »

Were you in the scheme less than 2 years? Depending on the vesting rules you might not be entitled to the ER contributions for transfer.

I was with the company for over 2 years. Contributed to the pension for less than 2 years, I also just noticed that on the item the gave me to sign. It doesn’t show my correct leaving date and on the leaving date they have would make it seem like I was with the company for less than 2 years

ANXIOUS

Fol20 wrote: »

I was with the company for over 2 years. Contributed to the pension for less than 2 years, I also just noticed that on the item the gave me to sign. It doesn’t show my correct leaving date and on the leaving date they have would make it seem like I was with the company for less than 2 years

It's based on scheme service not company service.

Fol20

So basically. You need to contribute into it continuously for 2 years or you won’t get your company contributions?

ANXIOUS

Fol20 wrote: »

So basically. You need to contribute into it continuously for 2 years or you won’t get your company contributions?

In its simplest terms yes.

Fol20

ANXIOUS wrote: »

In its simplest terms yes.

I was talking to the pension provider who also confirmed it. I never knew this when I was with the company as I could have easily put in 1pc just to keep it ticking away. It’s annoying now that I will loose about 2.5k my old company provided as I didn’t contribute to it for a min of 2years