AI Summary of 787E. Extent of relief.
This section delineates the allowable deductions for individual contributions to Personal Retirement Savings Accounts (PRSAs) based on age brackets, ranging from 15% to 40% of net relevant earnings. Specific thresholds apply to contributors aged 30 and over, with varying percentages for different age categories reflected in the legislation. Importantly, any contributions exceeding the employer limit are subjected to taxation as employee income, reinforcing compliance obligations.
Further stipulations restrict relief for individuals under existing schemes to additional voluntary contributions only, ensuring clarity in contribution limits. The legislation mandates that aggregate benefits across all related schemes remain within defined maximums, enhancing the framework for retirement savings regulation.
787E. Extent of relief.
(1) Subject to this section, the amount which may be deducted or set off in any year in respect of contributions made by an individual to one or more PRSA products, hereafter in this section referred to as the maximum allowable contribution, shall not be more than -
(a) in the case of an individual who at any time during the year of assessment was of the age 30 years or over but had not attained the age of 40 years, 20 per cent,
(b) in the case of an individual who at any time during the year of assessment was of the age 40 years or over but had not attained the age of 50 years, 25 per cent,
(c) in the case of an individual who at any time during the year of assessment was of the age of 50 years or over but had not attained the age of 55 years or who for the year of assessment was a specified individual, 30 per cent,
(d) in the case of an individual who at any time during the year of assessment was of the age of 55 years or over but had not attained the age of 60 years, 35 per cent,
(e) in the case of an individual who at any time during the year of assessment was of the age of 60 years or over, 40 per cent, and
(f) in any other case, 15 per cent,
of the individual's net relevant earnings for that year of assessment.