Great thanks, accountant recommended PRSA but like I said I'm a complete newbie. OK to put lump sum of 100k each in to whatever kind of plan might be?It's an executive pension/directors pension you're looking for rather than a PRSA. They can be set up in advance of your y/e so you have time to get any lump sums transferred over.
Kevin
www.thepensionstore.ie
Brilliant thank you, yes maximise offset against this year's profits is exactly what we need to do, hence the urgency. Would Executive Pensions be more complex/expensive than PRSAs? Trying to avoid getting stung as best we can!Definitely not a PRSA. This has a much lower limit on eligible contributions.
As Kevin said, you need to establish Executive Pensions, higher potential contribution and greater contribution flexibility. If you do start off with a Lump Sum investment only, then tax relief (against Corporation Tax) is spread over the next 5 years. So you need to establish an expected Annual Contribution and add to this by “once off” lump sums in order to maximise offset against current year’s profits.
Get your pension advisor to work out the numbers.
My head is wrecked - accountant is adamant it's PRSA we need, but the pensions advisor is equally adamant we need an executive pension! Yet neither can quite explain why.
Is it that you maybe can add personal contributions to a PRSA down the line so as to minimise personal tax on a Form 11?
Update: Following on from last year's advice about this (thank you), I started an executive pension, but given the new rules this year for PRSAs and my circumstances as outlined above, should I be thinking about transferring all to a PRSA now, and loading further with any excess company cash?
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