Is your company making a profit?
Do you want to save for your own retirement?
Do you want to withdraw wealth from your company in a tax-efficient way?
If the answer is YES to these questions then a change in pension legislation in 2023 will be of interest to you!
Last year changes in the tax treatment of Personal Retirement Savings Accounts (PRSA) were introduced. These changes removed the Benefit-in-Kind implications for employees. The implication of this change is that an employer can now pay into a PRSA with no upper limit on the employer contributions!
This incentive has made PRSAs very attractive to Directors and Business Owners. Employers can now make unlimited PRSA contributions on behalf of a Director or an employee, provided they are in full-time employment and receiving an income. Apart from providing a substantial pension pot at retirement, it is also a useful way of extracting wealth from your company or business. Setting up a PRSA allows you to move the profits from your business into a PRSA funding up the Standard Fund Threshold of €2 million (you are limited under the traditional company arrangement).
We have expertise in this area having already advised a number of business owners todate. We consider your own specific circumstances and will help you with your Pension decisions in the context of your overall Financial Plan – all whilst taking Revenue guidance and tax law into account.
Interested? Why not reach out to Gráinne Ryan on grainne@sunrisefianncialplanning.ie to find out more.
