Executive Pension Plans

An Executive Pension Plan (EPP) is a tax-efficient savings plan set up by employers for key employees. Typically, an EPP is set up under a trust with the employer acting as the trustee.

 

Both the employer and the employee can make contributions into the pension. An EPP can be an excellent way for company directors and other valued employees to save for retirement. Depending on your age, you may be able to contribute up to 40 percent of your income into your pension and claim tax relief.  

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A company contribution can be treated as a tax-deductible business expense; however, large one-off contributions may have to be spread over a number of years. Company contributions are not subject to BIK, Income Tax, PRS or USC. Extracting company profits via employer contributions results in tax relief for the employer and no tax liability for the employee.

 

You can also add additional life cover to your pension. Company contributions for this cover are tax-deductible as a business expense.

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Businessmen
Benefits of an Executive Pension Plan
  • Corporation Tax relief at 12.5 percent 

  • Generous limits for employer contributions 

  • No tax liabilities for employees

  • No PRSI liabilities for employers

  • Investments can grow tax-free until retirement

  • The opportunity to plan a business exit strategy with access to funds as early as 50 if taking an early retirement 

  • A tax-free pension lump sum at retirement  

  • The possibility to pass wealth on to spouse or children

  • Employer contributions do not face age-limit restrictions that apply to personal contributions.

Philip Farrelly & Co. Financial Services Ltd t/a Farrelly Financial is regulated by the Central Bank of Ireland, 2 Kennedy Road, Navan, Co. Meath.

Registered in Ireland No. 300744. Directors are Philip Farrelly and Philip B. Farrelly.

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