HOW IT WORKS
Non-deducted Contributions: how to Declare Them and Why
Declaring “non-deducted contributions” to the Pension Fund becomes necessary when pension fund payments exceed the annual limit of €5,164.57. In such cases, the excess amounts are not tax-deductible from income.
By December 31st of the following year, members must submit a notification through their Reserved Area, specifying the exact amount and the reference year.
Why report non-deducted contributions
The main purpose of this procedure is to obtain a significant tax benefit: when the final benefit is paid out, the non-deducted amounts that were reported to the Fund will be used to reduce the taxable income.
To verify the amount of non-deducted contributions, you can check the Form 730 completed during your Tax Return. In sections E27 and
It is crucial to emphasize the importance of submitting the notification regarding non-deducted contributions referring to the previous year. For example, by December 31st, 2024, you will need to indicate the non-deducted amounts from 2023, shown in the 730/2024 form.
How to declare non-deducted contributions
1.
Access your RESERVED AREA.
2.
3.
- Enter the amount that exceeds the annual deductibility limit
- Click on “MODIFY NON-DEDUCTED CONTRIBUTION”
- Confirm by clicking “SAVE”
4.
Download and carefully store the issued receipt.
You will NOT need to send it to Fondapi as it will be automatically acquired and processed by the system.
If you have any doubts about the amount to enter, contact the Fund through the contact form selecting “TAX” as the subject of the request.
Still Have Questions?
Book a completely free telephone consultation with no obligation or send an email to clarify any doubts.
