Sunday Times: Money Q&A: How can I avoid exceeding the standard fund threshold for my pension?
0Eoin Hassett, Senior manager at Independent Trustee Company –
“While you are in a fortunate position to be faced with this problem, you are right to be concerned. Pensions are a very tax efficient financial vehicle in light of the tax relief provided on contributions and fund growth but there are several limitations to the state’s support, one of which is the standard fund threshold. This is the maximum that individuals are allowed to amass in their pension fund without having to pay extra tax when they access their benefits. The current limit is €2 million; any amount over that is subject to tax at 40 per cent.”
