There was yet another change in pension rules in Finance Bill 2024.
From 01st January 2025, employer contributions to PRSA’s are restricted to 100% of an employee’s gross annual salary.
Since January 2023 (another change of rules!) unlimited amounts can be invested in a PRSA (only curtailed by the SFT of €2 million) by directors for themselves or their employees.
This has made PRSA’s a very attractive proposition for cash rich companies and directors. It has allowed many business owners play catch up on their pension funding or bring forward future contributions.
Our advice is to act quickly if you wish to avail of the current generous funding opportunity (i.e. have lump sum in excess of your annual gross salary).
We recommend that you consult with your tax adviser first in relation to what is an appropriate contribution based on your role within the business (and same for employees).
#pensions
#taxsavings
