Important Changes In Relation To Employer Contributions To Personal Retirement Savings Accounts (PRSAs)

Following November’s Finance Bill, from January 1, 2025, employer contributions to Personal Retirement Savings Accounts (PRSAs) will be capped at 100% of the employee’s annual salary without triggering a benefit in kind (BIK) tax liability.

 Key Points:

• Contributions up to 100% of salary: Tax-efficient and BIK-free
• Excess contributions: Treated as taxable income for the employee
• Corporate tax relief: May not be available for contributions above the salary limit

Your Role as a Broker

1. Client Education: Ensure clients understand the implications of these changes.
2. Strategic Planning: Help clients optimise their salary and contribution strategies.
3. Proactive Outreach: Contact existing PRSA clients to review and adjust their plans..
4. Self-Directed PRSAs: Guide clients on their investment control and cost benefits compared to traditional pensions.

Remember, PRSA contributions will be accepted into the QRSL PRSA once our standard source of funds requirements are met. QRSL do not monitor contribution levels, and it is the responsibility of the client and their advisors to ensure that these new requirements are considered when contributions are being made.

By positioning yourself as an expert on these changes, you can provide invaluable service to your clients and potentially grow your business in the process.

Our team is always available to assist you with any queries. Please contact your Business Development Manager directly with any queries or alternatively email the team in Naas at salessupport@qrsl.ie

All brochures, application forms and guides for our products can be found at qrsl.ie/document-store