Taxes Consolidation Act 1997 section 787A

Interpretation and supplemental

Section 787A defines the terms used in Chapter 2A of Part 30 in relation to Personal Retirement Savings Accounts (PRSAs).

• A PRSA is a long-term personal retirement savings account established by a contributor with a PRSA provider under a PRSA contract; it is designed to enable people, especially those without pension provision, to save for retirement in a flexible manner, with tax relief available (subject to age-based limits) for contributions made by the individual or by the individual's employer.
• The section defines key participants — contributor, employee, employer and director — as well as PRSA-specific terms including PRSA contract, PRSA product, PRSA provider, PRSA administrator, PRSA assets and PRSA contribution.
• From 1 January 2025, an employer limit applies: employer contributions to an employee's PRSA are not subject to benefit in kind (BIK) provided they do not exceed 100 per cent of the employee's emoluments in the year of assessment (or, where emoluments are lower due to Social Welfare benefits, unpaid leave or sick leave, 100 per cent of the previous year's emoluments); contributions exceeding the employer limit give rise to a BIK charge and are not deductible by the employer for corporation tax purposes.
• Any word or expression used in Chapter 2A that is also used in Part X of the Pensions Act 1990 has, unless the context otherwise requires, the same meaning in the Chapter as it has in that Part.