A Retirement Savings Plan can be deducted from your IRS tax return within certain limits. The deduction allowed for PPR is20% of contributions, subject to the limits indicated below, and only applies to residents of Portuguese territory who are not yet retired.
Tax benefits included in this set of deductions:
The limit for this group of tax deductions for 2016 is as follows:
In households with three or more dependents, the limits are increased by 5% per dependent.
The following are not deductible for income tax purposes:
- The amounts paid by taxpayers after retirement.
- Amounts paid by third parties, except for payments made by employers on behalf of and in favor of employees (taxed as taxable income).