2greenwilloW2

Thank you for the clarification.

Thank you for the reply. However, I am still a bit unclear on the conditions for using pension annual allowance carry forward when contributions are made by way of employer contribution. Is it the case that an employer can contribute into an employee's pension more than the employee earns, up to the 2023/24 annual allowance of £60,000, or more than that if the employee is able to carry forward unused pension annual allowance from the 3 previous tax years?

To add to this thread for the sake of clarity, I have amended my question as follows: I have read that a condition of using pension annual allowance carry forward is that total pension contributions must not exceed total taxable earnings in the tax year that the pension contributions are made in order to avoid incurring liability for a pension annual allowance tax charge. But does this taxable earnings requirement apply when the pension contribution is made by way of an employer contribution? Thank you

I would like my employer to pay all of the taxable element (£70k) of my redundancy pay into my DC pension as an employer contribution (redundancy sacrifice). However, this employer contribution would mean that the total contributions to my pension would exceed my taxable earnings (£55k before the redundancy pay) in the current tax year. I have enough unused pension annual allowance in the current tax year and from the previous 3 tax years to carry over. My question is: I have read that a condition of using pension annual allowance carry forward is that total pension contributions must not exceed total taxable earnings in the tax year that the pension contributions are made. But does this requirement apply when the pension contribution is made by way of an employer contribution? Thank you