Housewife SSIA & Goverment Incentive for Pension Investment

E

EPF

Registered User
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15
Hi,

The Wifes SSIA is maturing at the end of the month and we would like to invest 10,000 of it in a Pension to get the 2,500 from the goverment but have no idea about how to do it.

Any Ideas? What are our options ?

Thanks
 
HI EPF

In case you don't have time to read all those links...
Set up a PRSA for her, she can invest €7,500 in it, needs to prove to PRSA provider that money is coming from a SSIA (this form will be given by SSIA provider) and then the PRSA provider will get the other €2,500 from the government scheme themselves so you don't have to do anything except choose the fund that the €10,000 goes into.
 
If you or your wife are paying tax at 42% then it may be worth taking the full or part of the SSIA and investing it in a pension scheme to avail of the 42% tax relief. The transfer of the SSIA to a pension is worth 33%.
 
Re: Housewife SSIA & Government Incentive for Pension Investment

I take it from the use of 'housewife' in the OP's title that his wife is not in paid employment, which has been my own wife's case for the past 10 years or so (swanning around at home, raising my children...;))

However, she intends to return to paid employment some time in the next 6-12 months, and her SSIA will be maturing in April 2007. Can I take it that she would then be eligible for this incentive, as Revenue's [broken link removed] of last April suggests?
In order to qualify for the incentive, the following criteria will now apply:
  • Your income must not exceed €50,000 in the year prior to the year in which the SSIA matures;
  • You cannot claim tax relief, under normal tax rules, for SSIA amounts up to and including €7,500 reinvested in an approved pension product;
  • You cannot use this incentive to replace any amounts you are already committed to contribute to a pension product.
Click to expand...
If she were not to find/resume employment, would she still be eligible for some sort of tax credit that could be transferred to myself, as all her tax credits are currently? (Not that that would outweigh the 'post-individualisation' benefits to us of her going back to work, I know...)

[Edit: Maybe this is one for the taxation forum, really — but you wouldn't have me duplicating posts now, would you...?]
 
I take it from the use of 'housewife' in the OP's title that his wife is not in paid employment, which has been my own wife's case for the past 10 years or so
Click to expand...

My prev answer amended slightly
If you are paying tax at 42% then it may be worth taking the SSIA and investing it in a pension scheme to avail of the 42% tax relief. The transfer of the SSIA to a pension is worth 33%.
Click to expand...
The pension is in your name not your wifes name

If she were not to find/resume employment, would she still be eligible for some sort of tax credit that could be transferred to myself, as all her tax credits are currently?
Click to expand...

No, if your wife returns to employment she can get the PAYE credit of 1.490 pa. This is not transferable between spouses. Your SRCOP is increased by her expected income up to a max of 23K. Anything she earns is taxed at your marginal rate of tax.
 
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