Top up your pension savings and get up to 40% tax back
Want to top up your pension with a lump sum, 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 2019, if you want to claim tax back for the 2018 tax year.
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, 2019, you get to claim back at your marginal tax rate of 40%. That’s €400 back in your pocket, right now. Which means it only actually cost you €600 to top up your pension by €1,000.
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
