The Finance Act 2022 effective since January 2023 has brought in significant benefits for pension saver which is your employer’s contribution is no longer treated as a Benefit in Kind following the 2022 Finance Act.
What this actually means is an employer can make an employer contribution to a PRSA they wish and the only limit is the overall standard fund threshold of of €2 Million. If you are an owner manager of your own business with a cash rich balance sheet, now is a good time to build up your pension pot, additionally, the employer can claim tax relief on the contribution in the accounting period it is paid.
Some other benefits of a PRSA are:
- You control your investment strategy.
- You can select from a wide variety of investment options.
- A PRSA is flexible and can change to suit your circumstances, your employment, income and risk appetite.
- A PRSA can accept transfers from existing pension funds at no charge. You have the potential to hold all your pension arrangements in one vehicle, potentially reducing costs
- The costs of a PRSA are fully transparent.
- You can enjoy tax relief at your highest rate of tax on any personal contributions made (subject to Revenue limits).
- PRSA assets grow free of both capital gains tax and income tax.
- You can plan how your eventual retirement benefits are taken, in order to suit your needs.
If you would like to discuss in more detail contact us now on 01 234 3787