Pension Contributions
Amounts contributed to a pension can be deducted from gross income before that income becomes liable to tax, subject to certain limits. In effect, tax relief is given at the marginal rate of tax. In addition, relief in respect of PRSI and the health levy may also be available. Pension contributions of employees in occupational pension schemes will normally be made and relief given through their payroll system. Similar relief can be claimed through the local Revenue Office for contributions to other pension arrangements.
Reference Material
Leaflet IT 14 - Tax Relief for Investment in a Pension and Approved Retirement Fund Options
Leaflet IT 14A - Personal Retirement Savings Account (PRSA)
Application of Earnings Limit to Tax Relief for Pension Contributions