Frank Grimes
Registered User
- Messages
- 27
That's normally called an ESPP - Employee Share Purchase Plan.Looking for a replacement scheme since my SSIA ended.
I dunno what its called, there are two schemes at work one where a bit is deducted weekly and then shares are purchased on your behalf every 6 months at a discount of 15% - its not that scheme!
Never heard of such a scheme. Surely your employer can give you more information about this scheme? What rate of tax applies on exit?Its the other where your bonuses pre-income tax (which I previously took in cash, taxed at 42%) are used to buy shares with no discount, and then the shares are held for three years after which time you are free to sell, and a bit like the SSIA you are only taxed on (hopefully) any gains made.
If you able to contribute gross income before tax (and PRSI?) deductions then you would be getting relief of up to 48% (42% tax and 6% PRSI/health levy) which would indeed make it a lot more attractive than the SSIA. I find it hard to believe that such a scheme exists. Are you sure that you're not mixing it up with something else? Even a pension scheme?I ama bit blinkered so need help to see the light. Am I right in thinking this scheme sounds better than the SSIA, 42% back from the gov. versus 25%? In which case, bugger! should I have been doing this alongside/instead of my SSIA?
I find it hard to believe that such a scheme exists. Are you sure that you're not mixing it up with something else? Even a pension scheme?
Interesting - so in answer to the original poster I guess it certainly does look like this is could be better than the SSIA scheme allowing for the inherent risks in investing in a single share? One drawback in my opinion is that one is putting two eggs (job and investments) in one basket (your employer). Enron and all that...
Does this scheme only work with bonuses or is that a bit of a red herring?
As far as I understand, you can nominate a certain amount to be deducted from each paycheck but I believe, I could be wrong, that this amount cannot exceed the contribution to the scheme from bonuses.
2. Shares bought with bonuses - this is the hold-for-3-years-and you-pay-no-income-tax scheme. I don't believe you can participate in this scheme with regular savings from your salary.
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