Company Pensions are one of the most tax efficient means of transferring profits into long-term personal wealth.
Self-Administered Pension Plans (SSAP) are highly flexible retirement planning vehicles. They allow company directors to reduce both corporation and personal taxes, provide for a cash lump sum and income in retirement, and potentially offer attractive estate planning options.
Key Features of an SSAP:
- The SSAP is established under trust. Assets are ring-fenced from creditors of the company.
- Flexibility: The SSAP can be invested in cash deposits, investment funds, equities, bonds, property & land and more.
- Investment income and gains within the SSAP are not subject to CGT, DIRT or income tax in the pre-retirement phase.
- Consolidate existing Pensions: Transfers may be allowed from existing occupational schemes, retirement bonds, PRSAs.
- The company can contribute directly and claim corporation tax relief. There is no liability to income tax, PRSI or USC on company contributions.
- Contribution limits: In many cases the Revenue allowable limit will be significantly greater than that available with personal pension contracts, and may be multiples of your salary.
Upon retirement the company director will have several options, including taking out a portion of the fund as tax-free cash lump sum, investing in an annuity to provide an income for life, or investing in a flexible post-retirement vehicle.
Costs are fully transparent and we are happy to discuss for each individual case. Initial costs can be paid by the company and are tax-deductible. Ongoing costs will depend on the investment strategy.
This is a very brief overview of one retirement and tax planning strategy available to company directors. If you would like to discuss further and find out whether an SSAP is suitable for you please get in touch.
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Ardbrack Financial Limited.
Office Phone: 021-4773833
Disclaimer: The content of this article is for general information purposes only. It does not constitute tax or investment advice as it does not take into account the investment objectives, knowledge and experience or financial situation of any particular person or persons. You are advised to obtain professional advice suitable to your own individual circumstances. Ardbrack Financial Limited makes no representations as to the accuracy; validity or completeness of the information contained herein and will not be held liable for any errors or omissions.
Ardbrack Financial Ltd is regulated by the Central Bank of Ireland