Hi,
I've looked if this topic has been raised. If I've missed it am happy to be redirected.
I'm PAYE full time employed. I max out pension contribution to limit for my age. My partner is self employed. We are taxed jointly. My salary is above the €115k income threshold for calculating max % contribution. I would have scope to contribute more. Their income is significantly less than that.
I'm thinking of a pension plan for my partner. Obviously a PRSA or personal pension. They have a historic DC pension from an employment many years ago - it won't be large but I assume could be transferred in.
My question is (a) whether contributions to their pension is limited to the % of their income or does a joint assessment have any benefit here and (b) our joint marginal rate is obviously at the higher rate - would all contributions to their personal pension get the higher rate benefit (though to be honest - tax benefit is only one factor here. I'm thinking having a dedicated pension arrangement has it's own justification)
If I use some numbers for illustration - say I'm on €200k and they have €20k income. We are in our early 50's so appropriate limit on tax benefit for contributions would be 30%. So if I max mine I get relief on €34,500. Is there a way to be able to get relief on any more than €6,000 for them?
Appreciate any pointers - thanks
I've looked if this topic has been raised. If I've missed it am happy to be redirected.
I'm PAYE full time employed. I max out pension contribution to limit for my age. My partner is self employed. We are taxed jointly. My salary is above the €115k income threshold for calculating max % contribution. I would have scope to contribute more. Their income is significantly less than that.
I'm thinking of a pension plan for my partner. Obviously a PRSA or personal pension. They have a historic DC pension from an employment many years ago - it won't be large but I assume could be transferred in.
My question is (a) whether contributions to their pension is limited to the % of their income or does a joint assessment have any benefit here and (b) our joint marginal rate is obviously at the higher rate - would all contributions to their personal pension get the higher rate benefit (though to be honest - tax benefit is only one factor here. I'm thinking having a dedicated pension arrangement has it's own justification)
If I use some numbers for illustration - say I'm on €200k and they have €20k income. We are in our early 50's so appropriate limit on tax benefit for contributions would be 30%. So if I max mine I get relief on €34,500. Is there a way to be able to get relief on any more than €6,000 for them?
Appreciate any pointers - thanks