Correctly enter retirement planning in the tax return and take advantage of tax benefits
13 May 2025
4
Minutes
Katrin Straub
CEO at nextsure
The tax return is due, and you're wondering where you need to enter your retirement provision? Many taxpayers miss out on potential savings here. This article will precisely show you which forms are relevant for Riester, Rürup, and occupational pensions, and how to correctly declare your contributions to ensure maximum tax benefits.
The topic in brief and concise terms
Riester contributions belong in Schedule AV; Rürup contributions and statutory pension contributions in Schedule Vorsorgeaufwand.
Since 2023, contributions to basic retirement plans (e.g., Rürup, statutory pension) can be deducted in full up to the maximum amount of €27,566 (2024, for singles).
Pension payments are taxable and should be entered in Schedule R, R-AV/bAV or N, depending on the type.
Overview: Understanding the Tax Treatment of Retirement Provision
Contributions to retirement provision reduce your taxable income as special expenses. For the year 2024, the maximum amount for basic retirement provision expenses is 27,566 euros for individuals. Since 2023, these contributions are 100% tax-deductible. This mainly affects statutory pensions and Rürup contracts. For the Riester pension, there is Form AV to apply for allowances or an additional special expenses deduction. Occupational pension schemes (bAV) are usually deducted directly from gross salary, thus reducing it. Correct entries ensure a noticeable tax saving. The exact regulations are anchored in the Income Tax Act (EStG), particularly paragraphs ten and ten a. This section provides you with an initial overview before we delve deeper into the details of each form of provision.
Riester Pension: Fill in Anlage AV correctly
For your Riester pension, the Anlage AV of the tax return is crucial. Here, you enter your contract details and contributions made to receive government allowances or the special expenses deduction. The maximum deductible special expenses amount for Riester contracts is €2,100 per person annually. The tax office conducts a favourable assessment: if the tax savings from the special expenses deduction are higher than the allowance, the deduction is granted. Many providers already transmit the data electronically to the tax office. Nevertheless, you must complete Anlage AV, for instance, to make declarations regarding direct or indirect eligibility. An example: Max has paid €1,500 into his Riester contract and is entitled to a €175 basic allowance. He enters €1,500 in Anlage AV. The tax office checks whether the special expenses deduction of €1,500 offers more tax advantage than the €175 allowance. Find out more about private retirement provision in ELSTER.
Our Expert Tip for the Riester Pension
Ensure that your Riester provider correctly and promptly submits the annual certificate according to Paragraph 92 of the Income Tax Act (EStG) to the Central Allowance Office for Retirement Assets (ZfA). Check the data transmitted in your pre-filled tax return (VaSt) in ELSTER. In case of discrepancies, you should enter the correct values and contact your provider if necessary. This is particularly important to secure the full special expenses deduction for pension contributions.
Rürup Pension (Basic pension): Utilise investment retirement expenses
Contributions to the Rürup pension, also known as basic pension, belong in the Pension Expenses section of your tax return. They are usually entered in line eight under 'Contributions to certified basic pension contracts'. The data transmission is typically carried out electronically by the provider to the tax office. Contributions to the Rürup pension are part of the basic provision and deductible as special expenses up to the maximum amount of 27,566 euros (for singles in 2024) at one hundred percent. From this maximum amount, your contributions to the statutory pension insurance (employee and employer share) are deducted. An example: Anna is self-employed and pays 12,000 euros into her Rürup pension. She has no other basic old-age provision expenses. She can claim the full 12,000 euros as special expenses. For employees with statutory pension insurance, the deductible Rürup share is reduced accordingly. Learn more about the three tiers of retirement provision.
The following points are important for the Rürup pension:
Entry in Pension Expenses section (usually line 8).
Electronic data transmission by provider is common.
Maximally deductible within the framework of the maximum amount for basic provision (2024: 27,566 euros for singles).
Offsetting contributions to statutory pension insurance.
Full deductibility of contributions (100 percent) since 2023.
Occupational Pension Scheme (bAV): What belongs in the tax return
In occupational pension schemes (bAV), contributions are often paid directly from the gross salary through salary conversion. These contributions are tax and social security-free up to certain maximum limits. For the year 2024, eight percent of the contribution assessment ceiling of the pension insurance (West) is tax-free and four percent is exempt from social security contributions. Since the contributions already reduce your taxable gross salary, they generally do not need to be separately entered as an expense in the tax return during the savings phase. The already reduced gross salary is recorded in Annex N. Ensure that your employer correctly accounts for the salary conversion in your payroll. Payouts from the bAV are taxable upon reaching retirement age and must then be declared in Annex R-AV/bAV (for direct insurance, pension funds, pension plans) or Annex N (for support funds, direct commitments). More information about occupational pensions and taxes can be found on our blog.
Payout Phase: Correctly Taxing Pension Income
When you receive benefits from your pension plans, these must be taxed. For pensions from Riester contracts and specific types of occupational pensions (direct insurance, pension funds, pension schemes), use the form R-AV/bAV. Benefits from Rürup contracts and the statutory pension insurance belong in form R. Occupational pensions from direct commitments or support funds are recorded in form N as income from employment. The taxation of pensions is regulated in Paragraph 22 number five EStG. The taxable portion of the pension depends on the year the pension commences. For pensions starting from 2040, full taxation is anticipated, although the Annual Tax Act 2022 has slowed the increase in the taxable portion, so full taxation will be reached only by 2058. Always carefully check the benefit statements sent to you by your pension providers. These often contain advice on correct entries. Details on taxation when terminating a private pension insurance are also relevant.
Important forms for pension receipts:
Form R: For statutory pensions and Rürup pensions.
Form R-AV/bAV: For Riester pensions and benefits from direct insurance, pension funds, and pension schemes.
Form N: For occupational pensions from direct commitments or support funds.
Form R-AUS: For pensions from abroad.
Expert Knowledge: Legal Foundations and Current Judgments
The tax treatment of retirement provisions is primarily regulated in Paragraph Ten of the Income Tax Act (EStG). Specifically for the Riester pension, Paragraph Ten a EStG is decisive, defining the special expenses deduction and the subsidy promotion. The taxation of pension benefits themselves falls under Paragraph 22 EStG. In recent years, there have been important rulings by the Federal Fiscal Court (BFH) on the issue of so-called double taxation of pensions (e.g., Az. X R 20/19 and X R 33/19). Although these rulings confirmed the basic constitutionality of deferred taxation, they led to adjustments by the legislator, such as the complete special expenses deduction for retirement provisions since 2023. Our expert tip: Take advantage of the pre-filled tax return (VaSt) via ELSTER. Many data, such as contributions to basic provisioning, are electronically transmitted by the providers to the tax office and can thus be directly adopted. This minimizes errors when dealing with the question 'Where to enter retirement provisions in the tax return'. Get comprehensive information about insurances and taxes.
Practical instructions for your tax return
First, gather all relevant documents for your pension contracts for the tax year in question. These include annual statements from Riester providers (certificate according to Paragraph 92 EStG), benefit notifications for pension payments, and evidence of Rürup contributions. Ideally, use tax software or ELSTER for your tax return. These programs often guide you specifically through the necessary forms and sections. For Riester contributions, fill in the Anlage AV. Rürup contributions and statutory pension insurance contributions belong in the Anlage Vorsorgeaufwand. If you have a company pension scheme through salary conversion, your gross salary is already reduced in Anlage N. Pension payments are declared in Anlage R, R-AV/bAV, or N, depending on the type. Always check the electronically pre-filled data (VaSt) provided by the tax office for completeness and accuracy. This ensures that all your expenses are correctly taken into account. Remember also to consider other deductible insurances.
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More useful links
Bundesfinanzministerium provides a BMF letter on the tax incentives for private pension schemes.
ELSTER offers guidance on the subject of retirement provision for the year 2022.
ELSTER offers guidance on the subject of retirement provision for the year 2023.
Bundesfinanzministerium provides a BMF letter on the notification concerning taxable benefits from pension schemes or occupational retirement provisions from 2020 onwards.
Deutsche Rentenversicherung informs about the taxation of pensions.
Deutsche Rentenversicherung offers a brochure on tax law for insured persons and pensioners.
Bundesregierung provides information on pension contributions.
Verbraucherzentrale offers a guide on occupational retirement provision.
FAQ
Which forms do I need for my retirement provision in the tax declaration?
The most important forms are the AV form (for Riester pension), the Vorsorgeaufwand form (for Rürup pension and statutory pension contributions), and for pension income, the R, R-AV/bAV, or N forms, depending on the type of pension provision.
What is the difference between Anlage AV and Anlage Vorsorgeaufwand?
The AV form is specifically designed for contributions to the Riester pension scheme, to apply for government allowances or the special expenses deduction. The 'Vorsorgeaufwand' form is used to claim contributions for basic provision (e.g., statutory pension, Rürup pension) as well as other miscellaneous pension expenses.
What is the maximum amount I can deduct for my retirement provision?
For basic provisions (statutory pension, Rürup), up to €27,566 (single) or €55,132 (married) can be deducted in full as special expenses in 2024. For the Riester pension, the maximum deduction for special expenses is €2,100 per person.
Are my retirement contributions automatically reported to the tax office?
Yes, many providers of retirement contracts (particularly for Riester and Rürup pensions) electronically transmit the relevant data to the tax office (so-called eData). Nevertheless, you must complete the corresponding forms in your tax return and verify the data.
Do I need to declare my occupational pension in the tax return?
Yes, pension benefits from company pension schemes are taxable. Depending on the implementation method (e.g., direct insurance, pension fund, support fund), they must be entered in Form R-AV/bAV or Form N.
What happens if I forget to include my pension in the tax return?
If you do not declare deductible pension contributions, you may be missing out on a tax saving. When it comes to pension income, failing to report it may lead to inquiries from the tax office and possibly to additional tax payments.
