For most people, planning for retirement means contributing to a pension plan. This may be an employer-sponsored pension plan or a private pension plan which by normal retirement age is likely to constitute the individual’s largest asset. Over the course of a person's working life they may accumulate a number of pension funds from different sources.
The level of annual contributions that can be made on a tax efficient basis to a pension fund and what benefits may be taken from the pension fund on retirement, are governed by tax legislation. This legislation is complex, particularly so where there are multiple pension funds. It is important that the potential tax reliefs and tax charges are identified and appreciated before drawing down benefits on retirement.
The following are some of the matters that need to be considered:
Tax efficiency of corporate structures for pension funding;
Claiming tax relief on contributions to pension plans;
Lump sum(s) to be taken on retirement where there are multiple pension funds;
Impact of the Standard Fund Threshold/Personal Fund Threshold and related excess fund tax charge on the pension fund(s) at retirement;
Taxation of post retirement benefits from Irish and foreign pension funds.
The efficient management of funding for a pension should include analysis of the tax implications of the pension structures available and how best they suit the individual circumstances of employees, employers and self-employed persons.
How we can help
HLB Sheehan Quinn has been servicing our clients’ needs for over 40 years and we have been advising them on their tax planning requirements for decades.
We provide an expert team, with a single point of contact, that will help guide you through the various pension solutions that are available. We can review the way your current pension funding is structured, identify opportunities for savings now and in the future, and help implement changes that make a real difference.
If you would like to arrange a meeting to discuss your requirements and how we can help please contact us.