Pension guide for directors
Here is our guide to pensions;
Nelson Life guide to Directors and Executive Pension funding
An important aspect of planning for the future can be to identify funds in your business that may be surplus to what you currently need to finance your business today and to move these funds out of the business into personal assets.
A tax efficient way of achieving this is to set up a company pension, also known as an Executive Pension Plan. Arranging for your company to make contributions to an Executive Pension in your name can allow you to move cash from the business into a Revenue Approved Pension Trust.
Contributions made by the company to the plan can normally be fully offset against Corporation Tax
No benefit in kind (BIK) implications
Under current legislation, any growth earned by your pension fund is tax free. this includes investment into property funds or bespoke property investment via self directed pension.
Tax free cash at retirement, subject to Revenue limits
Possibility of early retirement from age 50 – you will need to surrender shareholding and sever all links with the business
The company can usually make much higher contributions to a pension plan than an individual in their own right - subject to Revenue maximum funding limits
Employee contributions are tax deductible by up to 40%* of salary depending on age and subject to an earnings cap, currently €115,000
If you are making an EMPLOYER investment into your pension scheme, you MUST make a make the investment BEFORE end of the accounting year.
Want to know more? We are available to discuss your options, and we look forward to hearing from you.
Our job is to help you choose a product and structure that will help you meet your goals.
telephone | 091441188 and/or email | office@nelsonlife.ie
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Nelson Life Limited trading as Nelson Life is regulated by the Central Bank of Ireland.
WARNING: Past performance is not a reliable guide to future performance. WARNING: The value of your investment may go down as well as up. WARNING: You may lose some or all of the money you invest. WARNING: These funds may be affected by changes in currency exchange rates. WARNING: If you invest into this product you will have access until you retire (Pension Products). WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances. WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice.