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Maximum Pension Contribution question

sportsfan90

Hi All, a question based on a conversation in work that Google wasn't able to answer for us, or at least we couldn't find an answer to.

Is there a limit to how much you can contribute to your pension? I'm aware of the tax-relief limits (15% for people aged under 30, 20% for those aged 30-39, etc) up to €115k.

But are you allowed contribute beyond those percentages and just not be able to avail of the tax-relief?

For arguments sake, let's make the numbers easy and say someone aged 45 earning €100k will get tax-relief on €25k put into their pension. Can they contribute another €20k or €30k if they so wished? Or is the max amount they can get tax-relief on the same as the max amount they can contribute to the pension for that year?

I'm aware doing this completely negates the biggest benefit of pensions in the tax relief you get on the way in, and that the extra 20 or 30k would probably be better invested in shares etc, but it's just something that came up in conversation that I didn't know the answer to.

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garbanzo

Yes you can. You just don’t get the tax relief on any amounts over the age related thresholds.

Geuze

Yes you can.

You can carry the extra amount into the following year to claim tax relief.

sportsfan90

Thanks for the responses, that's what I thought but couldn't find anything online to back it up.

So theoretically, even if you've already maxed out your tax-relief threshold, you can write a cheque for a million euro to your pension provider?

Geuze

I recall this issue being discussed on AAM sometime:

https://www.askaboutmoney.com/forums/pensions-and-retirement-planning.10/

Donald Trump

Why wouldn't you just put it into something relatively low risk (non pension) and then take it out of that and fire it into your pension as you either hit a tougher year expense wise, or else as your limit increases with age

wfdrun

company pension does not suffer these 15% 20% restrictions .....

Driving gloves

I have unused tax relief pension contribution from previous years, I am paid a shift allowance at 20% and payroll only stopped 20% employee contribution from my pre-shift salary.

So I basically have 20% of 20% of my salary in unused tax relief, €1,500 per year for the past 3 years.

Can I just send a cheque to Zurich? How do I claim the tax relief on it?

Henry Ford III

https://www.boards.ie/discussion/comment/118437178#Comment_118437178

There's a Revenue funding test.

sportsfan90

https://www.boards.ie/discussion/comment/118438292#Comment_118438292

Can you expand on this please Henry?

Henry Ford III

https://www.boards.ie/discussion/comment/118438373#Comment_118438373

Yes of course.

In any new or top up EPP case a check will be run taking into account age, retained benefits, salary, nrd, scheme service, marital status and probably a few more criteria. Crudely it's to ensure that maximum benefits are not exceeded.

Funding limits are reasonably generous, but there are limits.