PRSA contributions when not working?

[maybelline]

Currently I have a full-time job and contribute to a PRSA but am planning to take probably a few years off soon while my children are young. Can my husband continue contributions into my PRSA during this time? Any thing I've read on it relates to my salary (max contributions etc) which I obviously won't have!

 

[LDFerguson]

It is possible to continue contributions to your PRSA while you're not working and then claim tax relief when you return to work. The PRSA will remain in your name so it will have to be you who claims the tax relief back even if it is your husband who funds it. The other possibility for you to consider is for your husband to simply start or increase pension contributions in his own name.

Liam D. Ferguson

 

[maybelline]

Liam,
Many thanks for your reply. Would the tax relief be applied retrospectively? Another idea I had was to suspend the PRSA and put the contributions into a high interest, relatively inaccessible deposit account then lodge the lump sum to the PRSA when I start working again. Would that work out better maybe?

 

[LDFerguson]

Tax relief would be backdated so which of your plans would work out better would depend on which one (savings account less DIRT tax or PRSA net of charges) achieved a better return in the period in question.