Restrictions to PRSA Contributions Imminent

The Finance Bill 2024 has been released and as previously predicted, restrictions to PRSA contributions have been announced.

Since January 2023, the only limit on contributions to PRSAs was the €2 million Standard Fund Threshold, which effectively freed up an employer to be able to pay larger employer contributions into an employee’s PRSA, should they wish and be in a position to do so.

Contributions are looking likely to be limited to 100% of employee’s salary. This change will most likely come into effect in January 2025 and will have major implications on those who waited until the latter part of their career to begin saving for retirement, or those who took time out of their careers to raise their family.

For those looking to utilise the current €2million tax relief limit before it expires, please speak to your financial advisor now before its too late. ITC can help set up a PRSA now if you don’t already have one or take in contributions quickly to an existing ITC PRSA.

We are anticipating substantial number of requests for new PRSA’s and one-off contributions to existing arrangements, so please don’t leave it to December to act.

For information on the ITC PRSA:

- Please speak to your financial advisor,

- Check out our handy guide,

- Email JustAsk@independent-trustee.com.

Fiona Harris

ITC Marketing Manager