Company directors have massive scope to withdraw money tax efficiently from their business by using this pension vehicle. Avoid paying Corporation Tax, Income Tax, PRSI, USC, BIK by setting up your own Directors Pension.
One Man Scheme – Executive Pension:
This structure is well suited to the busy company director, who prudently wants to save for retirement tax efficiently, with minimal interruption to day to day business activities. You concentrate on your business and let the a fund manager concentrate on your pension. Here, your pension assets are pooled into a fund or funds which matches your risk profile, which can be reviewed at intervals with your broker at your discretion.
SSAP- Small Self Administered Pension:
This form of pension is suited to an experienced investor who wishes to take control of their own pension fund. The fund can be used to invest in property, stocks etc as well as funds. Assets are not held in pooled accounts and are readily visible for each client.
What are the benefits?
- Company contributions are a fully tax deductible expense.
- Your initial investment potentially increases 100% straight away as opposed to if you made same investment outside of the pension vehicle.
- The growth of your fund is exempt from DIRT or growth taxes too.
- Tax free lump sum options at retirement
- Potential access to fund from age 50