backdating pension contributions

L

Lord Byron

Guest
I am on a salary of 100k (PAYE) and have a spare 40k knocking around. I am in my 30's so understand I can contribute 20% of my salary. I currently have no pension. My question is can I start a pension now and pay in the 40k, backdating 20k to 2007 and the other 20k for this year?
 
In short, yes. You can put in up to 20% of your P60 earnings figure for 2007 and up to 20% of what you ahve earned year to date.

Its ideal to invest on a regular basis as so to avoid peaks and troughs in the stockmarket....
 
Once you have claimed your tax relief for 2007, don't forget to also claim back your PRSI.

This time of year there are usually some deals out there for reduced charges on Personal Pensions so make sure you're getting a good deal.
 
LDFerguson said:
Once you have claimed your tax relief for 2007, don't forget to also claim back your PRSI.
Click to expand...

Just to clarify in regard to claiming back of PRSI - this only applies to the PAYE sector and not to the self employed?

The self employed can only avail of the income tax relief as far as Im aware.

Many thanks in advance.
 
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