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On the heels of the recent Budget, the Finance Bill was published on 10th October 2024 which outlines new legislative changes to employer contributions paid to PRSA’s. Prior to the Finance Bill, employer PRSA contributions were not subject to a Benefit in Kind (BIK) charge and there was no limit (or cap) in respect of the amount of employer PRSA contributions a plan could receive. However, from 1st January 2025, the Bill now provides a ‘cap’ for employer contributions to PRSAs i.e. employer contributions will be considered a BIK if they exceed an ‘employer limit’ which is defined as 100% of an employee’s salary. This means you have until 31st December 2024 to make a large, uncapped Employer contribution to your PRSA plan. If you are planning to pay an employer contribution to your PRSA before the year end please contact us immediately to discuss .
