Most tax efficient way to set up pension for wife

NowhereMan

Registered User
Messages
7
Hi,

I have a good salary & benefits, say approx €100k, a DB pension, and contribute a lot via AVCs.

My wife has a small (€2k p.a.) DB pension due from a previous job when she retires, but nothing else apart from enough contributions to get the state pension. She earns about €10k p.a. with about another net €4k from rental income.

We have plenty savings for a lump sum investment.

I believe I/we should set up a PRSA for her, out of fairness if nothing else.

If I contribute funds to her PRSA, can we get tax relief at the top rate via our joint assessment?

Apart from that, am I missing anything obvious on my overall plan?

Thanks.
 
Pension tax relief is claimed on earned income. As your wife has no earned income, she cannot claim tax relief on any pension contributions.


Steven
www.bluewaterfp.ie
In the original message, Nowhereman said his wife earned 10,000 plus 4,000 in rental. No doubt she is paying some tax which could be claimed.
 
Your wife can contribute to a pension an get relief based on a set % based on her earned income and age.

The issue is that the increased standard rate cut off will be reduced. So she will get relief at 20% rather than 40%.
 
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