Quick question for all you pension experts out there. I’m getting conflicting advice on maximum allowable pension tax relief for an employee on a PRSA vs an Occupational Pension. See example below.
A 48 year old wants to maximise their pension tax relief (25%) and has a choice between a PRSA or an Occupational Pension. Let’s assume both will return the same over any given period. The employer will contribute 5% to either one.
From a taxation point of view - is it more beneficial for this person to contribute to an occupational pension so they can avail of the full 25% pension tax relief? Whereas with the PRSA, will the employers 5% contribution reduce the maximum allowed pension tax relief to 20%?
In others words, do occupational pension contributions an employee receives from their employer, reduce, or have any impact, on the maximum pension tax relief a 48 year old (25%) can claim from Revenue?
A 48 year old wants to maximise their pension tax relief (25%) and has a choice between a PRSA or an Occupational Pension. Let’s assume both will return the same over any given period. The employer will contribute 5% to either one.
From a taxation point of view - is it more beneficial for this person to contribute to an occupational pension so they can avail of the full 25% pension tax relief? Whereas with the PRSA, will the employers 5% contribution reduce the maximum allowed pension tax relief to 20%?
In others words, do occupational pension contributions an employee receives from their employer, reduce, or have any impact, on the maximum pension tax relief a 48 year old (25%) can claim from Revenue?