Max AVC limit at age you turn 60

sector_000 · 26-03-2025 04:43PM #1

I know above age 60 you can contribute a max of 40% of your employment income to a pension tax-free.

What about during the year that you actually turn 60?

Is that 40% too? or 35%?

sector_000 · 09-04-2025 08:20PM

https://www.boards.ie/discussion/2058404166/max-avc-limit-at-age-you-turn-60

Any takers for this seemingly straightforward question? 😀

Darwin · 09-04-2025 08:28PM

https://www.boards.ie/discussion/comment/123342077#Comment_123342077

My understanding is, during the year you turn 60, you are still only eligible for the 35% rate (because for that entire tax year, you haven't yet reached the age of 60 for the whole period). Bit of a bummer if your birthday falls on January 2nd :)

sector_000 · 09-04-2025 08:55PM

https://www.boards.ie/discussion/comment/123342101#Comment_123342101

Do you happen to know of a reference to that? Without having to google and wade thru reams of tax law briefings!

Darwin · 10-04-2025 08:49AM

https://www.boards.ie/discussion/comment/123342220#Comment_123342220

I can't give you this in writing (as it is not written down anywhere), but I'm sure a quick phone call to revenue would confirm it. I can link you to Chapter 3 of the pensions manual published by revenue:

https://www.revenue.ie/en/tax-professionals/tdm/pensions/chapter-03.pdf

Page 3 details the age related percentage limits. There is no mention anywhere of pro-rata calculation based on the date of birth within the tax year. If the limit changed mid-year based on your exact birthday, the rules would likely be far more complex, requiring calculations for portions of the year. Typically, eligibility or limits are determined based on the age reached within a specific tax year or by a specific date within that year, not on a pro-rata basis.

FlipFlopAgain · 10-04-2025 09:06PM

You can contribute 40% tax free (up to the earning limit of €115,000) the year you turn 60.

I checked my tax return on the year that I turned 50 and it clearly shows that I was entitled to make contributions up to 30% tax free. And I recall asking the same question on AAM and being told that your age at the end of the tax year is what counts.

bbbbb · 10-04-2025 09:23PM

Yes, I understand it is the year you turn 60.

so if you turn 60 in Dec, you can increase your contributions from Jan.

Darwin · 11-04-2025 07:18PM

My interpretation of what revenue has published is wrong, my apologies. I have a consultation with a pensions advisor in May so I can double check with them.

Max AVC limit at age you turn 60

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