Friday, 21 April 2017 06:54

5 Pension Tax Benefits for Sole Traders

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  • Income tax relief in respect of all pension contributions subject to a max earnings cap of €115,000 and the following limits;
    • Under 30,    15% of net relevant earnings;
    • 30 to 40,    20% of net relevant earnings;
    • 40 to 50,    25% of net relevant earnings;
    • 50 to 54,    30% of net relevant earnings;
    • 55 to 59,    35% of net relevant earnings;
    • 60 and over,    40% of net relevant earnings;
  • Tax Free Investment growth, pension funds grow tax free, no DIRT tax payable on the investment growth.  
  • Tax free cash, 25% of all pension funds can be draw down tax free subject to a max of €200,000.
  • Approved Retirement Fund [ARF] is a tax efficient option for the balance of your pension eg: 75% after your 25% tax free lump sum. Income from your ARF can be draw down to minimise your personal tax, subject to a minimum drawdown of 4% per annum.  The benefits from the ARF can be inherited tax free by  spouse and by children over 21.
  • Tax Free Death Benefits to Spouse or Civil Partners in respect of Life cover that Self Employed people can put in place. The cost of the cover is a tax write off also.
  • Last modified on Tuesday, 25 June 2019 14:27
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    About Cregan Kelly O'Brien


    In 2007 Maurice Cregan and Colm Kelly established CK Financial Services to provide independent financial planning and advice to business owners and individuals. Tommy O'Brien, a General Insurance expert, then joined them in 2010, enabling them to meet the full financial needs of their clients. Financial Life & Planning Limited would deliver Financial Services, and O'Brien Cregan Kelly Insurances would deliver Insurance Broking services. Two Business Names were registered Cregan Kelly O'Brien Financial Planning and Cregan Kelly O'Brien Insurances

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