23-Jun-16

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.
  • For more information on any of the above please contact Colm Kelly of Cregan Kelly O’Brien Financial Planning at 01 8700370 or email colm@ckob.ie or www.ckob.ie

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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. The group has since been renamed Cregan Kelly O'Brien.

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