Pension planning
Submitted by bdoieadmin on Tue, 2010-11-16 15:20
The area of Pensions has created many challenges for companies providing pension benefits for employees together with individuals providing for their own ‘nest egg’ when they reach retirement age.
Pension funds should be seen as an investment vehicle to earn tax free income together with claiming an allowable tax deduction in relation to contributions made to the fund along the way.
Income tax relief is available for individuals for pension contributions made. The amount of tax relief depends on one’s age and net relevant earnings. There is a current cap of €150,000 of net relevant earnings. Earnings in excess of this amount will not be taken into account in calculating allowable contribution.
However with appropriate pension and tax planning, opportunities may arise for the self employed to claim tax relief over and above the relevant limits.
Opportunities may also exist in relation to accessing cash in the Pension fund before retirement age.
With our cross functional departments we can ensure that clients get access to expert advice. Our tax team works closely with our Wealth Management department advising on pension opportunities to enhance tax relief available or extract available cash from funds earlier.
For related services in this area please click here for Wealth Management.
Talk to us, contact a member of our Tax team.