Purchase an AVC

stoves1

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My wife who will be 60 in coming months and is a hse employee job sharing ie two days one week and three the next and employed there since 1999, she will have circa 5 years to retirement and wish to maximise her tax free lump sum at retirement, she will have circa 23 years employment with hse at 65yrs, she earns 21.5k and i earn 60k, we are taxed as a married couple i think i get the credits, i pay tax at 41% and she pays tax at 20% i was wondering if she were to take out an AVC, is there anyway that our taxes can be adjusted so she can avail of 41% relief on an AVC for her, many thanks for replies, she pays circa €2.2k a year tax and i pay circa 11k.
 
My wife who will be 60 in coming months and is a hse employee job sharing ie two days one week and three the next and employed there since 1999, she will have circa 5 years to retirement and wish to maximise her tax free lump sum at retirement, she will have circa 23 years employment with hse at 65yrs, she earns 21.5k and i earn 60k, we are taxed as a married couple i think i get the credits, i pay tax at 41% and she pays tax at 20% i was wondering if she were to take out an AVC, is there anyway that our taxes can be adjusted so she can avail of 41% relief on an AVC for her, many thanks for replies, she pays circa €2.2k a year tax and i pay circa 11k.

No is the simple answer she doesn't earn enough. She should still do the avc up to her max tax free cash limit as she is short on her tax free lump-sum. Benefit is 20% relief less charges = gain at retirement providing it is affordable.

Watch the contribution charges and ongoing management charges as these will eat into the tax relief benefit in a AVC invested in cash.


Mula
 
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