As far as my knowledge is concerned, the government encourages everyone to save for his or her retirement by providing tax relief on pension contributions. A tax relief either reduces tax bill or increases pension fund. There is plenty of tax and financial vehicles made in the United States where one can invest his pension. Some are tax deductible, like the traditional IRA and some not, like the Roth IRA. The traditional IRA is made with after-tax money and you can claim on your tax return, therefore reducing adjusted gross income.
Let me be frank that the process to get tax relief on pension contributions will depend on whether one is paying into a public service, occupational or personal pension scheme. Typically, the employer gets the pension contributions from the pay before tax is deducted. One only has to pay tax on the amount left, thus whether one pays tax at a basic, higher or additional rate, one will be able to get the full relief immediately. Practitioner and contribute to a public service arrangement, one will be taxed as self-employed for a portion of the earnings so one should claim tax relief through the self-assessment tax return. Furthermore, one can put money in someone else's personal pension, husband, wife, child or grandchild for instance. They will be able to get tax relief but will not affect own tax dues. While one will not be able to get tax relief, the person will get it through their tax return.
I recommend everyone to log on to http://www.kktaxgroup.com/ to explore further information related to tax problems.
