PRSA

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servicearea

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Hello everyone.
I recently set up a PRSA account through the company. I am currently contrbuting from my salary each month. The question would like to ask is, if I had a lump sum to contribute to this account what would be the most efficient way to go about it and claim the tax back at the relevant band?

Many thanks.
 
With pensions if you did not "use up" last year's age related tax relief for pension contributions then you can any lump sum contribution before October 31st in the following year can be made to avail of this. For example, if you made no pension contributions in 2003 then you can make a lump sum contribution before October 31st 2004 in respect of the tax relief that would otherwise go unused. Apart from this if you make contributions to a PRSA in excess of the allowed age related tax relief limits (see below) then you can carry any excess forward indefinitely and claim tax/PRSI relief on it in a subsequent year when you do not "use up" your maximum annual pension contribution tax relief.



Note that for such lump sum contributions that are presumably not made through payroll you will need to chase up the tax and PRSI/health levy relief manually and SW are currently not geared up for the latter unfortunately!
 
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