Thanks Liam . Do you know what is the logic of restriction?I'll assume that his public sector job will be his sole source of income. If so, while in theory he can continue to pay contributions to his private pension, he will no longer be eligible to claim tax relief on them so that makes it inadvisable. Instead he should replace the contributions to the current private pension with contributions to an AVC PRSA on which he can claim tax relief.
Thanks Liam . Do you know what is the logic of restriction?
Does this mean that when calculating the amount to put into an avc prsa, the amount already contributed to the public sector spsps through payroll deduction must be deducted in order to arrive at the max available for tax relief?An AVC PRSA must be set up to run in parallel with the main scheme benefits. In a sense it's just an addition to the main scheme benefits. The benefits must be taken at the same time as the main scheme and must take the main scheme benefits into consideration. When applying for an AVC PRSA the provider looks for details of the main scheme to make sure that the benefits from the main scheme plus the AVC PRSA don't exceed any limits etc. So I think Revenue just want the link between the main scheme and the AVC PRSA.
Yes.Does this mean that when calculating the amount to put into an avc prsa, the amount already contributed to the public sector spsps through payroll deduction must be deducted in order to arrive at the max available for tax relief?
Ah OK, in the case of the SPSPS would that include the additional superannuation contribution, single pension scheme 2 and the adj. Single pension scheme?Yes.
Interesting. Why is this? Do you have a link to relevant circular or other documentation regarding this?The ASC doesn't count towards the tax relief max. The standard Superannuation deductions do.
Thank you. Also does anyone know if for public sector workers, is net relevant earnings the same as gross income for usc or total income for income tax (which is net of employee deductions under the spsps?)@Tadhg22
If you're asking does the My Account system automatically carry forward an overpayment, I don't know. Only someone who has done this or Revenue can answer that.
At a guess, I'd say no becuase there a specific box/section that asks 'Amount carried forward from a prior year, for which relief has not been obtained'
So, in your example above she'd put the 20% figure in for 2022 and next year she'd put the 5% in for 2023 + whatever new money she pays around this time next year in a separate box/section. If completed correctly the My Account system ensures that you do not go over your age related tax limits.
You'd have the proof of payment of the 25% on the PRSA2 Certificate so it couldn't be disputed.
Gerard
www.prsa.ie
Anyone have any ideas on this?Thank you. Also does anyone know if for public sector workers, is net relevant earnings the same as gross income for usc or total income for income tax (which is net of employee deductions under the spsps?)
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?