Taxes Consolidation Act 1997 section 787E

Extent of relief

Section 787E sets out the maximum tax relief an individual may claim in any year of assessment in respect of contributions to one or more personal retirement savings accounts (PRSAs), expressed as age-related percentages of net relevant earnings.

• The maximum allowable PRSA contribution for tax relief purposes is a percentage of the individual's net relevant earnings, ranging from 15% (under age 30) to 40% (age 60 or over), with intermediate bands at ages 30, 40, 50, 55 and 60; a 30% limit also applies to individuals under age 55 whose relevant earnings derive wholly or mainly from a sporting occupation specified in Schedule 23A.
• From 1 January 2025, where an employer contributes to an employee's PRSA and the total of such contributions exceeds the employer limit (as defined in section 787A), the excess is chargeable to tax as a benefit in kind of the employee under section 118(1).
• An individual who is a member of an approved occupational pension scheme or statutory scheme (other than one limited to dependants' benefits) may only claim relief in respect of additional voluntary PRSA contributions, subject to the same age-related percentage limits applied to remuneration from the relevant office or employment, reduced by any contributions to the occupational scheme; the aggregate benefits from both the PRSA and the occupational scheme may not exceed the maximum benefits permissible under section 772.
• A minimum relief threshold of €1,525 applies (except for AVC PRSAs), and the maximum allowable PRSA contribution (other than AVC PRSAs) is reduced by any relief claimed in respect of retirement annuity contract premiums or pan-European personal pension product (PEPP) contributions.