Maximising tax relief in respect of 2020 via pension contributions

27/10/2021 15:08:43

The final tax payment deadline for the 2020 tax year under the self-assessment system is fast approaching.

Law Society Retirement Trust Scheme

Reducing your liability

One way to reduce your tax liability is to make a contribution to an approved pension arrangement.

You can still be eligible for a tax refund for 2020 by putting money into a pension scheme and submitting a claim to the Revenue before 31 October 2021 (17 November 2021 if you submit your return online).

Tax relief is available at your marginal rate of tax subject to an earnings limit of €115,000 and contribution rates which are dependent upon your age as follows:

Age

Up to age 30

From 30 to 39

From 40 to 49

From 50 to 54

From 55 to 59

Age 60 and over                                 

% of Net Relevant Earnings

15%

20%

<25%

30%

35%

40%

 There are also tax advantages at retirement, in that you can take up to 25% of your fund as a lump sum, with up to the €200,000 available tax free.  Your funds also accumulate tax free whilst invested.

Retirement Trust Scheme

Law Society members who are self-employed, in partnership or in non-pensionable employment are eligible to make a pension contribution to the Law Society Retirement Trust Scheme. 

The scheme offers all the flexibility of a personal policy and in addition offers a number of enhanced features including a simple and transparent charging structure and best in class investment management.  

There is also a flexible Lifestyle Strategy in place that gradually reduces the level of equity risk in your retirement fund the closer you get to your chosen retirement age.

How do I join?

More information can be obtained from the scheme administrator at Mercer by emailing JustASK@mercer.com or by phoning 1890 275 275.