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V0373-18 14 February 2018 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Pension scheme contributions may be reduced after retirement if benefits have not yet been drawn

A taxpayer has enquired whether they can continue making contributions to their pension scheme after retiring, and whether they can contribute to their spouse's scheme if the latter has no income. The Directorate-General for Taxes (DGT) indicates that contributions may continue after retirement has been granted; however, once pension benefits have been drawn, contributions may only be made to cover contingencies of death or disability.

The question raised

Whether, after retiring and until deciding to redeem the pension plan, one may continue to make contributions intended for the retirement contingency, and whether it is mandatory to redeem the plan at age 65. Likewise, whether one may continue to make contributions to the pension plan of their spouse, who has no income. In both cases, the possibility of applying the reduction in the taxable base provided for in Article 51 of the Personal Income Tax Law to the amounts contributed.

The DGT's ruling

From the point of access to retirement, the participant may continue to make contributions to the pension plan. However, once the collection of the retirement benefit has commenced, contributions may only be allocated to the contingencies of death and disability. Contributions made that meet these requirements may be subject to a reduction in the general taxable base of the Personal Income Tax (IRPF), respecting the legal limits. Likewise, the reduction for contributions to the spouse's plan may be applied, with a limit of 2,500 euros per year, if the spouse has no net income or if such income is less than 8,000 euros.

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