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Earned income for PRSA contributions

  • 26-06-2024 9:01am
    #1
    Sarah1916
    Registered Users, Registered Users 2 Posts: 252 ✭✭


    my husband is self employed. We plan to purchase our first investment property over the next 12 months (no need to discuss pros/cons of an investment property).

    My husband will be in the 40-49 age bracket.

    Will he be able to contribute 25% of his total income (trade plus rental income) into his PRSA? Is rental income allowable income for pension contributions?

    He operates as a sole trader.
    I am maxing out my pension contributions in a company scheme. We would like my husband to increase what he is putting into his pension.


    we both pay 40% marginal tax.


    thanks in advance

    Sarah



Comments

  • #2
    Geuze
    Registered Users, Registered Users 2 Posts: 14,033 ✭✭✭✭Geuze


    https://www.paylesstax.ie/333/

    "Only income from employments or self employed earnings qualifies for pension tax relief. Pension tax relief is not allowed against Rental Income, Investment Income or Capital Gains."



  • #3
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,605 Mod ✭✭✭✭Jim2007


    Property is about the highest risk class an individual can choose to invest in and hitting fifty means you can't afford to get it wrong, especially when combined with being self employed. You need to sit down with a professional financial planner and address all of these issues to maximize you wealth.



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