Cap on Company contribution in Small Self Administrated Pension

tandcapply

Registered User
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6
Hi, I was searching but couldn't find it.
I'm a propitiatory Director in my tiny Limited Consultancy company
Assuming that the company makes all the contributions, Is there a cap on the yearly tax free contribution made by the company or can anything left in the company account be transferred into the pension fund.
I would love to see a table if such exists
 

Conan

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1,180
The contribution limits for Companies can be very generous. The Revenue limits are a function of your age, expected retirement age, salary, assumed investment returns. But certainly possible to see annual contributions of 100% of salary for slightly older individuals.
 

tandcapply

Registered User
Messages
6
The contribution limits for Companies can be very generous. The Revenue limits are a function of your age, expected retirement age, salary, assumed investment returns. But certainly possible to see annual contributions of 100% of salary for slightly older individuals.
Cheers, but is there a table that tells you how much money (as a percent or salary I assume) can the company put in the SSAS for its director?
I'm looking specifically for age 40 - 50 age group and let's assume the average Irish wage
 

tandcapply

Registered User
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6
Thanks Marc,

Appreciated, just since I can't see it in the link, I assume that the figures are for SSAS as in company contribution and not contribution I will be making (which should amount to zero).
 

LDFerguson

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4,264
Thanks Marc,

Appreciated, just since I can't see it in the link, I assume that the figures are for SSAS as in company contribution and not contribution I will be making (which should amount to zero).
Your assumption is correct.
 

SGWidow

Registered User
Messages
85
Hi Liam,

Are you saying that any personal contributions are in addition to the amount shown per the calculator? I would have thought that the calculation, per the calculator, would show the max amount that could be funded and that this amount could be split between the employer and the employee? I'm struggling to see the logic.
 

LDFerguson

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4,264
Hi Liam,

Are you saying that any personal contributions are in addition to the amount shown per the calculator? I would have thought that the calculation, per the calculator, would show the max amount that could be funded and that this amount could be split between the employer and the employee? I'm struggling to see the logic.
No - the calculator linked above shows the maximum level of overall contributions. If someone wants to make personal contributions, they can, subject to the usual age-related percentage of salary limits. But they would not be in addition to the maximum level of contributions; the overall level (whether it be company only or a combination of company and personal contributions) must remain as per the calculator.

In most cases, if someone controls the company then it's usually simplest that there are just company contributions and no personal ones.
 

Zenith63

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712
I'm in the very fortunate position to be able to benefit from this option as well and am a model case of why it exists in that I never had a pension previously as I've been spending every penny building businesses. But I still find it so bizarre that if I worked as an employee somewhere I'd only be able to contribute €23,000 to my pension this year, but as a company owner I could make a special contribution of €917,000, an employer contribution of €68,000 and a personal contribution of €23,000 all this year.

It seems hugely unfair that employees who find themselves in well paying employment in say their 30s do not have the same facility I have to load up their pension and get it out of the way, so they can spend more of their income in their 50s. I know Brendan had a thread on changing contribution limits recently, every time I see the calculation above I think how much reform is required in Irish pensions!
 

LDFerguson

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4,264
I'm in the very fortunate position to be able to benefit from this option as well and am a model case of why it exists in that I never had a pension previously as I've been spending every penny building businesses. But I still find it so bizarre that if I worked as an employee somewhere I'd only be able to contribute €23,000 to my pension this year, but as a company owner I could make a special contribution of €917,000, an employer contribution of €68,000 and a personal contribution of €23,000 all this year.

It seems hugely unfair that employees who find themselves in well paying employment in say their 30s do not have the same facility I have to load up their pension and get it out of the way, so they can spend more of their income in their 50s. I know Brendan had a thread on changing contribution limits recently, every time I see the calculation above I think how much reform is required in Irish pensions!
Yes it is a huge anomaly. There are certain professions who cannot incorporate a company, e.g. solicitors, barristers, doctors etc. So they're limited to the age-related limits for life.
 

Zenith63

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712
Companies can (we certainly do) put in place executive "top-hat" arrangements for staff which operate on exactly the same principles. In fact I have a call in 5 minutes with an employer setting up 14 schemes

https://info.globalwealth.ie/business-planning/
I guess I'm talking more about the well paid but non-executive workers. With so many MNCs operating in Ireland these days there are lots of quite young people being paid big salaries as developers/engineers etc. who will not have this available to them.
 

Sheepshooter

New Member
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8
I guess I'm talking more about the well paid but non-executive workers. With so many MNCs operating in Ireland these days there are lots of quite young people being paid big salaries as developers/engineers etc. who will not have this available to them.
Developers/engineers can incorporate and the MNCs are very open to this setup.
 

Zenith63

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712
Developers/engineers can incorporate and the MNCs are very open to this setup.
Not my experience at all that MNCs are open to it (thinking of FAANGs in particular) or even that they are keen on you switching to contracting either. Regardless though, my point is that the average person should not need to twist the arm of their employer (a pointless exercise with companies this large) or setup a company (a significant burden and loss of employment rights) to gain access to this facility, it's inequitable.
 

Sheepshooter

New Member
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8
Not my experience at all that MNCs are open to it (thinking of FAANGs in particular) or even that they are keen on you switching to contracting either. Regardless though, my point is that the average person should not need to twist the arm of their employer (a pointless exercise with companies this large) or setup a company (a significant burden and loss of employment rights) to gain access to this facility, it's inequitable.
Fair enough - my experiences is with the med device and pharmaceutical comapnies.
 

Itchy

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400
Not my experience at all that MNCs are open to it (thinking of FAANGs in particular) or even that they are keen on you switching to contracting either. Regardless though, my point is that the average person should not need to twist the arm of their employer (a pointless exercise with companies this large) or setup a company (a significant burden and loss of employment rights) to gain access to this facility, it's inequitable.
Notwithstanding it's an interesting strategy for those professionals with the capacity/competency, that are not as dependent on the benefits that come with employment.
 
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