Maximum AVC tax relief

[Ndiddy]

Trying to understand revenue rules. A 35 year old PAYE worker can contribute 20% of gross salary including bonus and get tax relief. Does this mean that the same worker could contribute more funds than 20% into the pension wrapper and just not get the tax relief? Or is the absolute limit the 20%? If it is possible to add more than 20%, what happens to funds that don't attract tax relief?

 

[Steven Barrett]

You can contribute more than the limit and roll the tax relief forward to the next year.


Steven
www.bluewaterfp.ie

 

[miser]

Can you backdate the tax relief for more than one year? Say if you didn’t use up your full tax relief on pension contributions in 2016, could you make a contribution in 2018 & get the relief then?

Or is the ‘backdating’ limited to only one year? (2017 for 2018)

 

[Sarenco]

You can make a contribution in respect of 2017 at any time up to the end of October, 2018.

After that, you're out of luck - it's a "use it or lose it" relief.

 

[Ndiddy]

and just to be clear, the extra funds will be in the pension account untaxed each year until withdrawel with tax relief rolled into the next tax year?