Pensions are one of the most tax-efficient tools available in Ireland — but the rules around contributions, funding limits and tax relief aren’t always as straightforward as they seem. In this Tax Tip, I cut through the noise.
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Key Points
Tax relief on pension contributions can be worth up to 40% for higher-rate taxpayers. Employer contributions are a deductible business expense. And the growth within the fund is largely sheltered from tax.
But there are limits — age-related percentage limits on personal contributions, the Standard Fund Threshold, and rules around what happens when you draw down. Getting these wrong can mean either leaving relief on the table or facing an unexpected tax bill at retirement.
For business owners in particular, the interplay between salary, dividends, pension contributions and retirement planning is where real value can be found — or lost.
Want to understand where pensions fit in your tax plan? Let’s have a conversation.
