Hill Meghan

[ezraisaac2024ii]

Pension plans are a savings and investment formula for retirement that has tax advantages. Thus, contributions to pension plans can be deducted in the income tax return , reducing the general tax base of the tax. If you have a pension plan, we will tell you what is the maximum contribution that you can deduct in 2024. Tax changes in pension plans The Ministry of Finance has already published the Draft Order approving the personal income tax declaration model for the 2023 financial year, which includes the tax developments that we must take into account in the next income tax return , whose campaign It will run between April 3 and July 1 . With regard to contributions to pension plans, there are no changes with respect to the limit that had been established in the 2022 income tax return. Therefore, the maximum that we will be able to deduct in personal income tax will continue to be the lowest of the following amounts: o 30% of the sum of the net income from work and economic activities of the declarant or 1,500 euros.

This limit will increase by another 4,250 euros for contributions to simplified employment pension plans for self-employed workers (PPES) and up to 8,500 euros if the increase comes from business contributions . Contribution limit to the individual Physical Therapist Email Lists pension plan in 2024 1,500 euros per year will continue to be the limit for contributions made to individual pension plans to give the right to reduce the tax base. Contributions to spouse's pension plans In the next personal income tax return we will also be able to continue deducting contributions to pension plans in which our spouse is a participant. The maximum limit, in this case, is 1,000 euros per year . In order to benefit from this deduction, it will be necessary that the spouse does not obtain net income from work or economic activities, or it is less than 8,000 euros per year. Contribution limit in employment pension plans Regarding employment pension plans, that is, those promoted by companies, the contribution limit to be entitled to tax deductions was already increased last year to 8,500 euros , and is maintained for the income tax return.



As long as these amounts come from business contributions , or from worker contributions to the same social security instrument for an amount equal to or less than the business contribution. Maximum contribution in simplified employment pension plans for the self-employed Self-employed workers, in addition to being able to contribute a maximum of 1,500 euros per year to their individual pension plans, may also contribute up to another 4,250 euros per year to simplified employment pension plans for self-employed workers (PPES). What happens if the maximum amount is exceeded? If last year you contributed an amount greater than the established maximum amount to your pension plan, you will have to withdraw the excess before June 30 to avoid penalties. This refund is made from the consolidated rights of the participant in their pension plan. If these rights have generated a positive return, this will increase the fund's assets, but if the return has been negative, the participant must take charge and compensate it.
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