Paying in more than revenue allowance

[askalot]

Are you allowed pay more that the revenue allowance into a private pension. I'm 41 and revenue allow 25% of earnings to be paid in at that age but I'm looking to boost the pension by contributing over 25% (late starter!). I know I won't get relief on the excess but is it possible to still pay it in?

Are there other problems with doing so?

 

[ClubMan]

As long as the relevant funding limits are not exceeded you can contribute more than your age related tax relief limit without penalty (other than not getting tax/PRSI relief on the excess). You should get independent, professional advice on whether such a move is appropriate or the most suiteable for your particular circumstances though. Note that you can backdate contributions before October 31st to the previous tax year if you did not avail of full relief last year. If you pay over your age related tax relief limit then I believe that you can claim tax/PRSI relief against the excess in future tax years in which you don't use your full allowance. Don't forget to claim PRSI relief!

 

[gerry15]

askalot/ClubMan,
As pension funds are designed for untaxed money ie.you don't pay tax on your money when you put it into your pension fund but it becomes taxable when you withdraw it - surely it would be better to put funds over and above the age related tax relief limits into other investments such as investment funds from Eagle Star, Hibernian, Irish Life etc.?
All moneys drawn from a pension fund are taxed as income whereas only the gains from other investments are taxed
gerry15

 

[asdfg]

All moneys drawn from a pension fund are taxed as income

In most cases you might not pay tax on the pension or pay tax at a lower rate.
Salary while working 60K
Pension 30K

In this case while working tax is calc at 42% + 2%
In retirement taxed at 22%
In addition there are greater reliefs available to over 65's

 

[Hesadub]

If you've used up your 25% tax-free allocation, and still want to pay more into yr pension, you could make use of the Governments SSIA-to-pension scheme, this year or next (depending on when yr SSIA matures).

 

[dam099]

In most cases you might not pay tax on the pension or pay tax at a lower rate.
Salary while working 60K
Pension 30K

In this case while working tax is calc at 42% + 2%
In retirement taxed at 22%
In addition there are greater reliefs available to over 65's

Thats OK for amounts up to relevant tax relief limit but you could end up paying tax again (even if at the low rate) on the excess which will have come out of income that was already taxed (which is what the OP would be doing).