Making contributions

Contributions can come form both the employer and the employee.

For employees the level and type of contributions paid into the plan are determined by the underlying plan rules. Contributions can come form both the employer and the employee. Additional contributions can also be made but the employer may not have to match these.

Typically contributions are a percentage of salary and will be paid each pay period into the retirement account by the employer.

Individuals establishing a personal plan agree the amount and frequency directly with iRS. There is no upper limit on contributions for international plans and these are made by direct bank transfer.

For Isle of Man clients contributions made to your pensions will receive tax relief up to the levels prevailing in the tax year they are made.

Impact of making additional contributions

By incresing the amount of regular contributions your plan will benefit from the power of compounding. Even by increasing the level of annual contribution by just 1% will, over time, have a significant impact. This is illustrated in the following graph.