Keith is a self-employed professional with net relevant earnings of €215,000 in 2020. The MAXIMUM total RAC and PRSA contributions he can claim tax relief on in 2020 is:

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Prepare for the QFA Pensions Exam 1. Use flashcards and multiple choice questions with detailed explanations. Secure your success with our comprehensive study tools!

Multiple Choice

Keith is a self-employed professional with net relevant earnings of €215,000 in 2020. The MAXIMUM total RAC and PRSA contributions he can claim tax relief on in 2020 is:

The key idea is that tax-relieved pension contributions in Ireland are limited to 25% of net relevant earnings, with a hard cap of €60,000 per year. The amount that can attract tax relief is the smaller of these two: min(25% of NRE, €60,000).

For Keith, with net relevant earnings of €215,000, 25% equals €53,750. This is below the €60,000 cap, so the maximum amount that can attract tax relief in 2020 is €53,750. Contributions above this within the year would not receive tax relief.

RAC and PRSA contributions count toward that €53,750 limit. In this scenario, the correct maximum is €53,750; none of the given options matches this figure, indicating a possible mismatch in the listed choices.

Keith is a self-employed professional with net relevant earnings of €215,000 in 2020. The MAXIMUM total RAC and PRSA contributions he can claim tax relief on in 2020 is:

Prepare for the QFA Pensions Exam 1. Use flashcards and multiple choice questions with detailed explanations. Secure your success with our comprehensive study tools!

Keith is a self-employed professional with net relevant earnings of €215,000 in 2020. The MAXIMUM total RAC and PRSA contributions he can claim tax relief on in 2020 is:

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