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AVC PRSA Question

  • 03-03-2021 11:49am
    #1
    BhoyRayzor
    Registered Users, Registered Users 2 Posts: 292 ✭✭


    Can someone clarify in a case where setting up an AVC PRSA mid year for additional contributions outside of the civil service pension scheme. My question is if there is income before this new employment from a previous employer in the same year, is that previous employers income included in the total NRE for calculating the total allowable tax relief? I know you need to specify the employment when making the claim so I'm just not sure if it is limited by that.

    So for example:

    Previous employment income: €10k
    Civil service expected income: €25k

    Is the relevant tax relief (20%) through the AVC PRSA only based on the €25k or the total NRE of €35k?

    There was a PRSA set up with contributions based on the previous employment income but no contributions made to that in the year in question. I guess if the AVC PRSA is only based on the civil service income a once off contribution could be made to that existing PRSA based on the €10k.


Comments

  • #2
    silent_spark
    Registered Users, Registered Users 2 Posts: 461 ✭✭silent_spark


    I would also be interested to know this! I’m also about to set up a private AVC PRSA with my existing PRSA provider. I’m a recent recruit to the public sector, on the single pension scheme, and trying to work out if both my contribution and the employer contribution to the SPS has to be deducted from my maximum percentage contribution based on age bands? Sorry to hijack!


  • #3
    BhoyRayzor
    Registered Users, Registered Users 2 Posts: 292 ✭✭BhoyRayzor


    silent_spark wrote: »
    I would also be interested to know this! I’m also about to set up a private AVC PRSA with my existing PRSA provider. I’m a recent recruit to the public sector, on the single pension scheme, and trying to work out if both my contribution and the employer contribution to the SPS has to be deducted from my maximum percentage contribution based on age bands? Sorry to hijack!

    My understanding is that the contribution that is deducted from the gross pay, should be 3% if on a lower income with the % rising then as your income rises, is taken off the age related %. So if the age rate is say 20%, 17% of the gross income qualifies for tax relief. I don't think there is necessarily a % contributed by the civil service that is factored in but I'm probably wrong on that as I'm struggling to work out how that is calculated too.


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