Do you a profit in your Ltd Company or Firm and if so are you interested in how to transfer this into your personal name?
Do you need to make a Pension Payment before Year End?
Are you aware that there is no BIK Limit on PRSA Contributions in this Tax Year?
Are you aware of the advantages of a Company Paid PRSA or an Executive Master Trust Pension?
 

Following the recent Finance Act changes, effective from 1st January, 2023, it is now possible for an Employer to make a contribution to a P.R.S.A.  (Personal Retirement Savings Account) for a Company Director or Employee of a Limited Company / Firm.  The key change compared to previous years is that there is no BIK Limit on the amount of the premium that the Employer can make. 

Limited Company Directors can make a payment for Directors or Key Employees into a PRSA before 31th December, 2023.  100% of the Employer payment will be a business expense for the Employer.

Our contact details are as follows:

Email: damiengrouse@mynestegg.ie

Phone: (086) 3734795 

7This means, that from January 2023 onwards, there are no B.I.K. contribution limits on making a pension contribution to a P.R.S.A.  

For example:  If you have a profit in your company in this financial year and make a payment into an "Employer PRSA", this pension payment can be offset against your profit as a business expense.  There is no limit to the amount of your contribution, other than ensuring that your total estimated Retirement Fund at Retirement Age, does not exceed €2 million.

For further information, please contact Damien Grouse on (086) 3734795 to discuss your particular needs / company situation.

Independent Mortgage Advice

If you have already begun researching mortgages online, you have likely been bombarded with advertisements. With so much information out there it can be hard to cut through the noise to get real, independent mortgage advice. And independent mortgage advice is exactly what a mortgage broker provides.

Fully Customised Mortgage Advise

All the blogs, websites and pamphlets in the world will only ever give you an overview of what kind of mortgage and mortgage rate is right for you. However, only a mortgage broker will be able to take your information and offer fully customised advice that directly relates to your application.

Assistance with the paperwork

There is no getting away from it. Why you’re applying for a mortgage, you’re going to be filling out a lot of paperwork. An Irish mortgage broker can assist with this paperwork saving you time and frustration.

Support throughout the Process

Applying for a mortgage can be frustrating and it can sometimes feel never-ending. That’s why having a mortgage advisor overseeing your application can help support you throughout every phase of the application process. With Nest Egg Wealth Brokers, we’ll be available to answer any questions you may have and explain every aspect of the application process in plain straightforward English.

For additional information on the advantages of hiring a mortgage advisor, please review our Mortgage broker page or get in contact with our Dublin mortgage brokers office today.

This is why we have created this guide for you to gain a better understanding of each concept, and how you can use them to make a solid financial foundation for yourself.

Create a Budget

The first thing you should do for your personal finance is to create a budget. Most simply, your budget will at least list your incoming and outgoing money each month. However, creating a more detailed report will allow you to make smarter decisions when it comes to how to spend your money daily. The reason to create a budget is so that you have a visual picture of how much money you have and helps you to identify your spending areas, as well as where you can save money.
There are many different ways to create a budget. The easiest way is on paper, writing it down yourself, however, you can also use spreadsheets meant for budgeting, budgeting software, or even budgeting apps that are available.

Cut Expenses

Once you’ve created a budget, you will be able to track all your spending better and areas where you will be able to cut expenses. An example of expenses that you could cut from your budget would be subscription services you no longer use. If you are looking to make bigger changes, then you could think about cutting an entire category of spending like any budget you have for dining out.

Cutting expenses is important because it will free up more money in your budget meaning you will be less likely to use credit cards. As well, this is money that you can now put towards any loans you may have to pay back or to saving for retirement. 

Pay off Your Debt

Unfortunately, getting out of debt can take time and it’s a stress that is very unwelcome in almost everyone’s lives. The best advice is to always try to pay more than just the minimum amount that is due each month. If you have a credit card or loan you are paying back and are just paying the minimum amount each month, this means you are not paying off any of the principal amount, only the interest.

When you create a budget and cut expenses, you will be able to find money that is being wasted on something unimportant, that you could be using the pay off your debt.

Save for Your Retirement

You may think you are too young to start saving for your retirement but this is simply untrue. The sooner you start with retirement planning, the more money you will have to enjoy your actual retirement years.

The best option would be to invest in a Personal Retirement Savings Account (PRSA). This is a long-term personal pension plan that is designed to let you save for your retirement in a flexible way, and are especially helpful for those who work in companies that don’t offer a pension scheme.

At Nestegg Wealth Brokers, we can help you set up your personal pension, and answer any questions you may have.

Individual Financial Planning

Now that you know the core concepts when it comes to individual financial planning, you can start your journey to saving money, paying off debt, and retirement planning.

Although you don’t need to be a financial planning expert to understand all of this, having one by your side is always a great decision. The team of professionals here at Nestegg Wealth Brokers are here to help you with all of your individual financial planning needs. Please contact us today to get started.

What are the main differences between “DB” and “The Approved Retirement Fund route after taking 25% tax Free”?

• Income Tax Relief
• Tax Free Investment growth
• Tax Free Cash, 25% of all pension funds can be drawn down tax free, subject to a max of €200,000
• Approved Retirement Fund (ARF) is a tax efficient option for the balance of your pension e.g. 75% after your 25% tax free lump sum. Income from your ARF can be drawn down to minimise your personal tax, subject to a minimum drawdown of 4% per annum. The benefits from the ARF can be inherited tax free by spouse and by children over 21.
• Tax Free Death Benefits to Spouse or Civil Partners in respect of Life cover that Self Employed people can put in place. The cost of the cover is a tax write off also.

• Corporation tax relief in respect of pension contributions
• No PRSI payable on employer pension contributions
• No USC payable on employer pension contributions
• No BIK on employer’s contribution to employee’s pension plan
• Tax Free Investment growth; there is no DIRT tax payable in respect of investment returns
• Tax Free retirement lump sum of 25% of your fund subject to a max of €200,000, for pension’s values in excess of €800,000 the balance remaining of the 25% after the first €200,000 is drawn down is subject to a lower tax rate of 20%
• Post Retirement tax planning options where you have the option of investing into an Approved Retirement Fund (ARF) and Approved Minimum Retirement Fund (AMRF) and these pensions assets are passed inheritance tax free to your spouse and to your children if they are over 21
• Higher investment limits for Company Directors, no earning cap limit of €15,000 that applies to Sole Traders
• Directors can include Death in Service Benefits of up to 8 times salary and this is a tax write off for the business, 4 times salary is payable to spouse tax free and the balance is paid by way of an annuity
• Directors salary can be protected by way of an Income Protection policy in the event of long term illness or disability again this can be paid by the business and it’s a full tax write off also for the business, the maximum level of cover allowed is up to 75% of the current salary.

• The key differences between an Annuity and an ARF are flexibility and risk.
• An annuity converts the money in your retirement fund into guaranteed income payable for your lifetime, fixed on the date you buy the annuity. However, on death, there will be little or no return for your dependants, unless you purchased a spouse/dependant's pension and/or had a guaranteed period.
• An ARF allows you to preserve, manage and control your retirement fund. You can invest your money into suitable assets and decide how much taxable income you want to withdraw each year, subject to the minimum withdrawal once you are aged 61 or over. Unlike an annuity, it does not provide any guaranteed income but any balance in your ARF on death is payable to your dependants.

• At present, the ARF option is available in respect of the benefits payable from Defined Contribution pension schemes and personal pension plan arrangements, but is not, generally, available to the main benefits payable from Defined Benefit pension schemes. The only option currently available to an individual with a Buy-out Bond funded from a Defined Benefit scheme is to purchase a pension annuity with the funds in the Bond after taking the permissible tax-free lump sum.
• Access to the ARF option for Buy-out bonds was generally dependent on whether the pension scheme from which the transfer value to the Bond originated was a Defined Benefit or a Defined Contribution scheme, with the option not available in the case of Defined Benefit transfers.
• With this important policy change, and with effect from today, access to the ARF option will be available in respect of all Buy-out Bonds regardless of whether the transfer to the Bond came from a Defined Contribution or a Defined Benefit arrangement and regardless of when the transfer took place to the Buy-Out Bond.

The Minister for Finance, Michael Noonan, T.D. said:

“This change will be of particular benefit to those individuals with Buy-Out Bonds whose Defined Benefit scheme may have been wound up and who had no choice but to accept a transfer to a Bond. I have asked the Revenue Commissioners to make any necessary administrative changes to give effect to this improvement which offers greater choice to holders of Buy-Out Bonds”.

Approved Retirement Funds are investment vehicles into which the proceeds of the pension savings of the self-employed, business owners and any individual with Defined Contribution pension arrangements (including Additional Voluntary Contributions or AVCs) may be invested at retirement, subject to conditions. The Approved Retirement Fund option is an alternative to annuity purchase and essentially gives control over post-retirement income to those individuals who, generally, have borne the investment risk on their funds in the pension growth phase.

Buy-out Bonds are specialised pension products into which the cash value of pension rights in funded occupational pension schemes may be transferred in certain circumstances, including where such schemes are wound-up.