Welcome news for employees, savers and members of PRSA schemes

Some more very welcome news for employees and those saving for retirement.

The Finance Bill announced today includes an exemption for employees from USC on employer contributions to a personal retirement savings account (PRSA).Up until today the the taxation treatment of an Employer contribution to a PRSA was treated as Benefit-in-Kind for the Employee and therefore attracted USC.

The typical USC marginal rate of 7% means that for employees in this position, each €100 contributed to their PRSA by their employer results in an additional €7 USC versus a member of an occupational scheme where USC is ZERO !Please note that this only applied to PRSA schemes and NOT  to Occupational Defined Contribution (DC) or Additional Voluntary Contribution (AVC) schemes

.Company Pensions Employer contributions to an exempt approved company pension arrangement are not a Benefit-In-Kind for the employee.

As a result, employer contributions to a company pension do not result in an income tax, PRSI or USC liability for the employee.

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

RETIREMENT & PENSIONS |  INVESTMENTS | FINANCIAL PLANNING | LIFE INSURANCE

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