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Female business owner

FINANCIAL PLANNING

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Investing in your pension tax-efficiently just got easier

Investing in a pension over the long term and contributing to it regularly is one of the most tax-efficient ways to build up a nest egg towards your core capital retirement pot. Effective from 1st January 2023, changes introduced in the Finance Act 2022 has opened up PRSAs to accept much larger tax-free employer contributions. Until recently, large employer contributions could only be made to occupational pension schemes and these contribution levels are restricted, linked to salary and service with the company. This is good news for business owners as it means that they can now tax-efficiently fund PRSAs up to €2m by way of company pension contributions. The change has also created an opportunity for directors of investment companies, who are typically not permitted to join employer pension schemes under current Revenue rules. Directors of investment companies may now set up a PRSA and contribute to it. Why not request a call to find out more?