My employer owes me a lump sum contribution to my Irish pension. I have to match that amount for it to be paid. Totals around €38k between employees and employer contribution. The issue arises because I was on a secondment for my firm to the UK for a few years and not tax resident in Ireland for that period of time.
However I am on a good salary and my regular pension contributions mean I will generally max out the tax relief available each year for pension contributions. It's not ideal but wondering is it's still possible to make an AVC for the lump sum amount and just forego tax relief on the contribution. My thinking here is that it it's better to have a larger sum compounding in my pension fund than trying to split this out over a number of years.
You can pay in the extra contributions.
It's worthwhile as the employer is also contributing.
If at any year in the future you do not max out for tax relief, you could claim tax relief on the lump sum.
That is very interesting. Can you retrospectively use the tax relief from previous years if you didn't use your age related pension tax relief limit or is it purely future years if you have overpaid?
Only the immediately preceding year if you make the pension contribution and tax claim before October 31st of the following year. E.g. today is the deadline for doing this for 2022 for PAYE/myAccount individuals.
Only the immediately preceding year if you make the pension contribution and tax claim before October 31st of the following year. E.g. today is the deadline for doing this for 2022 for PAYE/myAccount individuals.
Not sure that you mean here. If you exceed the age related tax relief limit in a year then you can claim tax relief on the excess in a future year.