Everything you need to know to make a last-minute pension contribution ahead of the 2023 income tax deadline
Making a lump sum pension contribution is a great way to rapidly increase your pension provision and secure your financial future.
And now is a great time to top up your pension – sometimes called an Additional Voluntary Contribution, or AVC – and claim income tax relief of up to 40% on your earnings from last year. In plain English, that means that for every €10,000 you put in, you can claim a reduction in your tax bill of up to €4,000.
With a few weeks to go, here’s Moneycube’s how-to guide on making a lump sum contribution to a pension.
Just want to go ahead and arrange a top-up? Let us know your contact details or book a call.
When do I have to do it?
The tax deadline to make contributions against 2023 earnings is approaching fast, so it’s best to act now.
The deadlines are:
31 October 2024 – If you plan to file a paper tax return
14 November 2024 – If you pay and file your tax returns online through ROS
Who can put money in?
Both employees and self-employed people can make a lump sum top-up to their pensions.
It doesn’t matter if you have an existing pension or not. If you paid income tax in 2023 from carrying on a trade, profession, or employment, then a pension contribution is possible.
How much can I put in?
The amount by which you can top up your pension depends on your age, as well as what you have contributed already for 2023 (for example, through your company scheme).
Depending on your age, you can put a certain percentage of your earnings into your pension.
| Age | Percentage limit |
| Under 30 | 15% |
| 30-39 | 20% |
| 40-49 | 25% |
| 50-54 | 30% |
| 55-59 | 35% |
| 60 or over | 40% |
There’s also an earnings limit: the maximum amount of earnings taken into account for calculating tax relief is €115,000 per year.
How much tax relief will I get when I top up my pension?
That depends on your income – you can’t claim relief for tax you wouldn’t pay. Tax relief is granted at your highest marginal rate. So if you’re a top-rate taxpayer (in general, if your annual income is more than €40,000), then you’ll receive tax relief at 40%. If you’re a standard rate taxpayer, then you’ll receive tax relief at 20%.
How do I receive tax relief on my AVC or top up pension payment?
For most people, if you’re making an Additional Voluntary Contribution or lump sum top up, you’ll need to pay in the full amount (the main exception is if you’re doing it via your company payroll, when they will likely administer it for you).
For example, if you’re a top rate taxpayer adding €10,000 to your pension, you’ll need to pay in the full amount at first. You’ll then receive a standard form certificate from your pension provider, typically called Retirement Annuity Certificate or RAC, or a PRSA AVC Certificate.
You can then upload your RAC or AVC Certificate to Revenue via Ros.ie or MyAccount to claim your tax refund. Typically your tax refund (€4,000 in the example above) will arrive via bank transfer or cheque a couple of weeks later.
The steps to claim your tax relief will differ slightly depending on the type of pension you’re in – you can see our guide for claiming relief on a personal pension here.
What can I invest in?
You can invest in a huge range of investment funds, company shares and other assets with a pension.
Moneycube has relationships with a number of pension providers, and can help you decide the mix of asset that’s appropriate for your requirements.
What’s the next step?
Moneycube can help you determine your lump sum pension contribution and get it done ahead of the deadline. Click here to request a callback, or send us your requirements here.
