Pension Options for Company Directors
Company or Executive Pension plans provide company directors with a very attractive and tax efficient method of converting company wealth into personal wealth. The director can choose to contribute himself (and receive marginal rate income tax relief on those contributions) or to fund the pension entirely from company resources (or a combination of both). These company funded contributions are not treated as a benefit-in-kind for the director and the company can offset the contributions against Corporation Tax.
PRSA’s
PRSA stands for ‘Personal Retirement Savings Account’. Essentially, a PRSA is a simple and more flexible pension. A PRSA makes it easier to save for retirement because it offers value for money, flexibility and convenience. A PRSA pension helps you save for retirement, and if your employment status changes or you move to a new employer, you may be able to bring your PRSA with you.
Income Tax Relief on Pensions
The maximum pension contributions, in any one year, for which you are entitled to tax relief, is related to your age and is expressed as a percentage of your gross income.
The maximum gross income figure for relief purposes is €115,000.
Tax Relief by Age Bracket
Under 30: | 30 to 39: | 40 to 49: | 50 to 54: | 55 to 59: | 60 and over: |
15% | 20% | 25% | 30% | 35% | 40% |
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invested.