AVC contribution 2010

C

chasie

Registered User
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Hi all
I am 58 years & will become redundant early next year I anticipate my settlement will be just over €150,000
Can I make a lumpsum AVC for 2010 of €52.500 ie 35% of €150,000
 
I'm not an expert, but I believe you can also max out your AVC allocation for the previous two (?) years as well (if you haven't done that already).
 
A termination payment made on leaving employment (taxed under S.123 of TCA 1997) would not be considered remuneration for pension purposes. This would include termination payments on redundancy, payment in lieu of notice and other ex-gratia payments.

Is the entire €150,000 a termination payment?

Liam D. Ferguson
​
 
Thanks Liam
Yes the entire sum is termination settlement calculated based on SCSB
 
As Squonk suggests, you can put in AVCs for 2009 and 2010 based on your salary. If the scheme isn't already providing you with Revenue-maximum lump sum, you may be able to withdraw the AVCs as tax-free cash early next year if you choose to take early retirement then.
 
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