Irish Life websites
Irish Life Health
Welcome to Ireland’s newest health Insurer, Irish Life Health. Bringing fresh options and innovation to the health insurance market.
Irish Life
Irish Life the largest life and pensions group and fund manager in Ireland, employing 2,000 people and servicing one million customers.
Irish Life Investment Managers
Managing assets in excess 39bn, ILIM manages money on behalf of multinational corporations, charities and domestics.

Top up your pension savings and get up to 40% tax back

 

 

It’s that time of year again, you might hear of people claiming tax back on their pension payments and think – but how? The way you do it is with a top up payment, or an Additional Voluntary Contribution (AVC) which needs to be made by 31 October 2020, if you want to claim tax back for the 2019 tax year.

Revenue announced an extension to the Pay & File deadline for self-assessment income tax customers from 12 November to Thursday, 10 December 2020 (applies if you pay and file through ROS).

Webinar

We have recorded a webinar for you which explains the benefits of making an AVC payment and the steps you need to take.

Example

Let’s look at an example, say you are in the marginal tax bracket (paying 40% income tax) and want to top up your pension with an AVC of €1,000:
  • Pension pot topped up with         €1,000 
  • Claim your tax back                        €400
  • Actual cost to you                           €600
Entitlement to tax relief is not automatically guaranteed.

What does that mean for you?

In the example here, your pension savings get the full €1,000 top up, which is invested in your pension pot until you retire.
This year, 2020, you get to claim back at your marginal tax rate of 40%. That’s €400 back in your pocket. 
Which means it only actually cost you €600 to top up your pension by €1,000. 

Extension of Pay & File deadline for ROS customers

In recognition of the challenges being experienced by businesses and tax practitioners arising from the COVID-19 crisis, Revenue announced an extension to the Pay & File deadline for self-assessment income tax customers from 12 November to Thursday, 10 December 2020.

This also gives members of company pension plans until the payment and filing date of 10 December 2020 to make a pension contribution and elect in their tax return to backdate against the 2019 tax year.

In order to qualify for the extension, pension plan members must both pay and file through ROS. Where only one of these actions is completed through ROS, the extension does not apply and the required date to submit both returns and payments is no later than 31 October 2020. 

There is no change to the deadline of 31 October 2020 for taxpayers who file on paper rather than online through ROS.

What are the next steps?

  Complete the top up form and send the payment to us, by cheque or bank transfer.
 
You can also submit payment details online. For more information please log in or register here. https://www.pensionplanetinteractive.ie/empower/login
 
Click in the image below to see all of the steps:
 
 

Click on the image below to find out what happens after you complete all the steps: 


 

Download the form