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Deductible contribution |
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Deductible contributionAmount paid into an IRA, an employer-sponsored retirement plan, or other type of retirement plan for a particular tax year that is a deduction from income for tax purposes.Deductible contribution Similar MatchesNational Insurance (NI) ContributionsNational Insurance (NI) ContributionsThere are currently four categories of contributions: Class 1, Class 2, Class 3 and Class 4.Class 1: Employees earning above the lower earnings limit pay contributions at a rate dependent on their income and whether they are contracted in or out of S2P (State Second Pension). The contributions are made up to the upper earnings limit, that is, no NI contributions are payable on earnings above this limit. In addition to employees' contributions, employers must pay Class 1 contributions on all the employees' earnings.Class 2: Self employed people pay flat rate Class 2 contributions provided profits are above a certain level.Class 3: These are voluntary contributions which can make up for unpaid contributions over the previous six years.Class 4: Self employed people also pay a percentage of profits between given limits. Equal percentage contribution rule (EPCoR)Equal percentage contribution rule (EPCoR)Principle that each asset contributes the same proportion to the equilibrium portfolio rate premium and risk. ContributionContributionMoney placed in an individual retirement account (IRA), an employer-sponsored retirement plan, or other retirement plan for a particular tax year. Contributions may be deductible or nondeductible, depending on the type of account. Nondeductible contributionNondeductible contributionA contribution to either a traditional IRA or Roth IRA. Income tax is due on the contribution in the tax year for which the contribution is made. Additional voluntary contributionsAdditional voluntary contributionsAdditional payments to a tax deferred savings account or an occupational pension scheme by an employee to boost a pension at retirement. Further Suggestionsmoney purchase scheme (defined contributions scheme)simplified defined contribution scheme free standing additional voluntary contributions defined contribution pension plan Defined contribution plan voluntary deductible employee contribution plan General Average Contribution Equity contribution agreement Excess contribution Federal Insurance Contributions Act Contribution Contributions Agency Contribution margin |
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