The pension landscape is constantly changing. The last number of years has seen significant changes to pension funding rules and tax reliefs.
There are two main pension structures available for Company Directors, they are an “Executive Pension (Mastertrust)” and a “ Personal Retirement Savings Account (PRSA)”.
Revenue funding and tax relief rules have changed significantly over the past three years in relation to both options.
It is worth comparing the differences in rules for an Executive Pension and PRSA to see which structure would suit you best, or indeed using both structures could be an option to consider.
If you would like to explore and discuss how the current pension rules and regulations could benefit you and your company, feel free to
email us on info@guardianwealth.ie
*The information on this page is based on our understanding on the relevant regulations as of November 2024 and will be subject to change in the future.*
Executive Pension | PRSA Pension | |
|---|---|---|
Level of Contributions Allowed | Subject to Upper Limit Based on Salary & Service | Limited to the Director’s Salary |
Tax Treatment for Employee/Director | No Personal Liability | No Personal Liability once contribution does not exceed their annual salary level |
Tax Treatment for Company | Allowable against Corporation Tax, subject to conditions | Allowable against Corporation Tax in the year paid subject to not exceeding employee’s annual salary level |
Pension Access Age | From Age 60 if continuing to work meeting specific requirements | From Age 60 if continuing to work meeting specific requirements |
Death Benefit | If Working – Tax Free Up to 4 times final remuneration | Fully tax free to spouse, standard inheritance thresholds for children apply |
Flexibility at retirement | All pensions must be paid at the same time | Payments can be phased if multiple PRSA’s are in place |
Tax Free Lump Sum Options at Retirement | Max of €200,000 tax free | Max of €200,000 tax free |
Options with Balance of Funds at Retirement | Establish a fixed income for life. (An Annuity) | Establish a fixed income for life. (An Annuity) |
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Like most business owners I put most of my energy into making sure my business is successful. Very often that leaves little time to stop and look at my bigger picture financial position, and plan for the future. I have been working with Michael in Guardian Wealth for a number of years now and it’s great to know that he has a financial plan in place for me, and meets with me regularly to make sure I am on track. I am happy to recommend Guardian Wealth.
Many thanks for all your help in making the transfer so seamless. I have to say I thought you did an excellent job and I am lucky to have landed on your website when I first started looking for someone to help me on this.
After so many years working and building up my Pension it was quite daunting when the time came to access my Pension. There were lots of different options available to me and I wanted to make sure I was fully informed. Michael in Guardian Wealth helped me to understand the immediate and long-term implication of the options available to me and guided me through the process. I would have no hesitation recommending Guardian Wealth.
Usually, your first contact with us will be a short telephone call or an email with Joanne in client services. This allows us to understand your situation and let you know how we can help you. A quick phone call or email can often be the easiest way to take the stress out of these decisions.
For most of our clients that initial phone call or email is where they start to get clarity on the right steps to get the most from their Pension.
Joanne will quickly get a handle on what pensions you have and other areas where you may need some tax advice. If it is the right thing for you, she will set up a quick call with Jim or Michael to give you some advice over the phone or on a video call. You can contact Joanne on 01 5267770 or 053 9110380
