I set up a PRSA last August. I pay into it every month through the payroll at work.
I would like to make a one-off payment.
So that for 2005 I would have contributed a total of 20% of my 2005 salary.
What is the best way to do this?
I could write a cheque for a lump sum and send it to my pension provider.
I would then need to apply for PAYE and PRSI refunds for 2005.
This means making two separate tax refund applications.
Revenue will take 4-6 months to give me the refunds.
Instead can I get work to use the payroll system to pay the amount (over a couple of months) from my gross salary? This would mean that I’d get tax relief straight away and wouldn’t have to wait for a refund.
However it would mean that I’d breach the 20% threshold for pension contribution for 2006.
Does this have any implications? What action is employer obliged to take when 20% is exceeded.
Ste
I would like to make a one-off payment.
So that for 2005 I would have contributed a total of 20% of my 2005 salary.
What is the best way to do this?
I could write a cheque for a lump sum and send it to my pension provider.
I would then need to apply for PAYE and PRSI refunds for 2005.
This means making two separate tax refund applications.
Revenue will take 4-6 months to give me the refunds.
Instead can I get work to use the payroll system to pay the amount (over a couple of months) from my gross salary? This would mean that I’d get tax relief straight away and wouldn’t have to wait for a refund.
However it would mean that I’d breach the 20% threshold for pension contribution for 2006.
Does this have any implications? What action is employer obliged to take when 20% is exceeded.
Ste