Basic AVC Calc. Question

F

faketales

Registered User
Messages
367
I am looking to make AVC for 2024. I want to max out my percentage limit. I turned 39 in 2024 that would allow me 20% if I understand correctly.

As per my last pay slip of 2024 my gross pay is say €70k. This number is what revenue also show for 2024.

So 20% would be €14k.

My Employee contribution is €5k. It also show I made €2.5k of AVC during the year. I think everything above their matching is called AVC on the pay slip.

Am I correct in understanding I have €6.5k capacity?

My pensions person at work has provided me a much higher number (9.5k). I can't understand how they got there and they haven't shared calculations.

They mention I turn 40 this year. Surly that is irrelevant?

Does pay after 21st December (last payslip date) go into 2025 for tax purposes?

Edit: revived to 9.5k to avoid confusion.

Pension is with AON. I don’t see a calculator for this on their site.
 
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Hi Faketales, would there be a reason they are not counting the 2.5k and they are reducing the 14k by the 5k employee contribution to get the 9k
 
Philip S said:
would there be a reason they are not counting the 2.5k and they are reducing the 14k by the 5k employee contribution to get the 9k
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I had hoped this wouldn’t happen with the numbers I provided… but omitting the 2.5k doesn’t give the number they game me.

Let’s say they told me 9.5k.
 
faketales said:
So 20% would be €14k.

My Employee contribution is €5k. It also show I made €2.5k of AVC during the year. I think everything above their matching is called AVC on the pay slip.

Am I correct in understanding I have €6.5k capacity?
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The employer contribution doesn't eat into your tax relief amount. So if you have already done €2.5K then you can still do a further €11.5K before October this year in respect of last year.
 
ClubMan said:
employer contribution doesn't eat into your tax relief amount.
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I’ve left out my employer contribution. The above is my employee.

The simplest answer is that they may have calculated incorrectly. Just want to ensure i haven’t missed anything.
 
Sorry, I misread the €5K as the employer contribution.

The fundamental point stands though - you can contribute 20% for last year and 25% this year and get full tax relief regardless of any employer contribution.

If you have already contributed €5K + €2.5K = €7.5K last year then you still have €6.5K "spare" of your €14K limit and you can add this and submit a tax commission before October (or early November) this year in respect of last year.
 
faketales said:
They mention I turn 40 this year. Surly that is irrelevant?
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It's irrelevant if you're focusing on maximizing your 2024 contributions and tax relief. It's relevant to this year as it means that you can do 25% this year.

I have no idea where your employer got the €9.5K figure. You'd need to ask them and be clear that you want to clarify the 2024 figures.
 
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