Am I maxed out on my tax relief for my age group on AVC contribution?

[denisoleary]

I'm 39 and I see the max tax relief for pension contributions is 20%.
My employer contrubutes 8% to my pension and I 12%.
So am I correct that I'm maxed out for my age group and that any AVC contribution does not recieve tax relief.

 

[garbanzo]

No. The tax relief levels relate to your personal contributions only. The employers contribution is not included.

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[S class]

If your 40th birthday is during 2025, you can contribute 25% for this year.

 

[asdfg]

You can also increase your contributions for 2024 to 20% before end of October 2025

 

[Fortune]

So am I correct

No

 

[homeowner]

Isn't there also a limit of tax relief up to 115K salary? So if you earn more than that, you will not get tax relief on the full 25%. ie the max amount eligible for relief is 25% of 115K.

 

[Cameo]

Isn't there also a limit of tax relief up to 115K salary? So if you earn more than that, you will not get tax relief on the full 25%. ie the max amount eligible for relief is 25% of 115K.

That's correct

 

[RoboMac]

As stated by others

https://www.revenue.ie/en/jobs-and-pensions/pension/relief/tax-relief-limits.aspx

from the above link

The maximum amount of earnings taken into account for calculating tax relief is €115,000 per year. Employer contributions to an employee's scheme are not taken into consideration when calculating the employee's earnings threshold.

 

[Duddaa]

If your 40th birthday is during 2025, you can contribute 25% for this year.

Wasn't aware of this. So if you're birthday (where the % changes) is in say November 2025 you can pay 25% for the whole year from January 2025?

 

[ClubMan]

Wasn't aware of this. So if you're birthday (where the % changes) is in say November 2025 you can pay 25% for the whole year from January 2025?

Yes. Even someone whose birthday is 31st December would qualify for the relevant higher tax relief percentage for the full year that they turn age 30, 40, 50, 55, and 60.

Tax relief limits on pension contributions

This page outlines the tax relief limits on pension contributions

www.revenue.ie