Top up your pension savings and get up to 40% tax back

 

How does it work?

Did you know, you might be able to claim relief on your 2023 income tax by making a once-off payment into your pension?

The closing date for claiming tax relief is 31 October. This once-off payment is also known as an AVC or Additional Voluntary Contribution.

Example

Let’s look at an example, say you are in the marginal tax bracket (paying 40% income tax) and want to top up your pension with an AVC of €1,000:
 
Pension pot
topped up with
€1,000
Claim your
tax back
€400
 Actual cost
to you
€600
     
Note that the granting of tax relief is at the discretion of your local Inspector of Taxes and is not guaranteed.

What does that mean for you?

In the example above, your pension savings get the full €1,000 top up, which is invested in your pension pot until you retire.

This year, 2024, you get to claim back at your marginal tax rate of 40%.

That’s €400 back in your pocket. Which means it only actually cost you €600 to top up your pension by €1,000.

File deadline for ROS customers

If you pay and file through ROS the deadline is Wednesday, 15 November 2024. Further information can be found at Revenue.

What are the next steps?

Important things to consider before you make a payment to qualify for tax relief:

  • Get independent financial or tax advice.
  • Ensure you are eligible for tax relief on the amount you wish to contribute - entitlement to tax relief is not guaranteed and is at the discretion of your local Inspector of Taxes.
  • Confirm your tax relief entitlement and the ROS (Revenue Online Service) deadline for filing online with your local Inspector of Taxes or visit the Revenue website.
  • If you wish to claim backdated tax relief you will have to ensure that your AVC pension contribution is paid to Irish Life on or before 31 October 2024 AND that you have submitted your claim for tax relief to your local Inspector of Taxes on or before 31 October also.
  • Irish Life will issue you with a Certificate to confirm the amount you paid and the date of payment. You will not need this to make your tax submission but you may be asked for this as proof of payment by your local Inspector of Taxes when they receive your application for tax relief.
  • Please contact your financial adviser if you have any questions in relation to making a once off payment.
 
 
 
 
 

Top Up Form

Complete the top up form and send the payment to us, by cheque or bank transfer.