Investment & Wealth
Rürup Pension
where to enter pension provision in the tax return
Correctly enter retirement provisions in the tax return and take advantage of tax benefits
The tax return is approaching and you're wondering where to enter your retirement provisions? Many taxpayers leave real money on the table here. This article provides precise guidance on which forms are relevant for Riester, Rürup, and occupational retirement provisions, and how to correctly declare your contributions to secure maximum tax benefits.
The topic in brief and concise terms
Riester contributions belong in Annex AV; Rürup contributions and statutory pension contributions in Annex Vorsorgeaufwand.
Since 2023, contributions to basic retirement provision (e.g. Rürup, statutory pension) are fully deductible up to a maximum amount of €27,566 (2024, for singles).
Payouts from retirement provision are taxable and must be entered depending on the type in Annex R, R-AV/bAV or N.
Overview: Understanding the Tax Treatment of Retirement Provision
Pension contributions reduce your taxable income as special expenses. For the year 2024, the maximum amount for pension expenses in the basic provision is €27,566 for individuals. Since 2023, these contributions have been fully tax-deductible. This mainly concerns the state pension and Rürup contracts. For the Riester pension, there is the AV form to apply for allowances or an additional special expenses deduction. Occupational pensions (bAV) are usually directly converted from the gross salary, which reduces it. Correct entry thus guarantees you a noticeable tax saving. The exact regulations are anchored in the Income Tax Act (EStG), particularly in sections ten and ten a. This section provides you with an initial overview before we delve deeper into the details of the individual pension schemes.
Riester-Rente: Correctly fill in Anlage AV
For your Riester pension, the AV appendix of the tax return is crucial. Here you enter your contract details and contributions made in order to receive state allowances or the special expenses deduction. The maximum deductible amount for Riester contracts is 2,100 euros per person per year. The tax office performs a favourable test: If the tax savings from the special expenses deduction are higher than the allowance, the deduction will be granted. Many providers already transmit the data electronically to the tax office. Nevertheless, you must complete the AV appendix to provide, for example, information about direct or indirect eligibility. An example: Max has paid 1,500 euros into his Riester contract and is entitled to a basic allowance of 175 euros. He enters 1,500 euros in the AV appendix. The tax office checks whether the special expenses deduction of 1,500 euros offers more tax advantage than the 175 euros allowance. Also, inform yourself about private pension schemes in ELSTER.
Our expert tip for the Riester pension
Ensure that your Riester provider correctly and promptly transmits the annual certificate according to paragraph 92 of the Income Tax Act (EStG) to the Central Allowance Office for Retirement Assets (ZfA). Check the transmitted data in your pre-filled tax return (VaSt) in ELSTER. If there are 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): Take advantage of retirement provision expenses
Contributions to the Rürup pension, also known as the basic pension, are entered in the 'Vorsorgeaufwand' section of your tax return. Typically, they are recorded in line eight under 'Beiträge zu zertifizierten Basisrentenverträgen'. Here, too, the data is usually transmitted electronically to the tax office by the provider. The contributions to the Rürup pension are part of basic provision and up to a maximum amount of 27,566 euros (for singles in 2024) are fully deductible as special expenses. 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 retirement provision expenses. She can claim the full 12,000 euros as special expenses. For employees with statutory pension insurance, the deductible Rürup portion is reduced accordingly. Learn more about the three pillars of retirement provision.
The following points are important for the Rürup pension:
Entry in the 'Vorsorgeaufwand' section (usually line 8).
Electronic data transmission by the provider is common.
Maximum deductible within the framework of the maximum amount for basic provision (2024: 27,566 euros for singles).
Credit of contributions to statutory pension insurance.
Full deductibility of contributions (one hundred per cent) since 2023.
Occupational Pension Schemes (bAV): What Belongs in the Tax Return
In occupational pension schemes (bAV), contributions are often paid through salary conversion directly from the gross salary. These contributions are tax-free and exempt from social security contributions up to certain maximum limits. For the year 2024, this means that eight percent of the pension insurance contribution ceiling (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 on your tax return during the savings phase. The already reduced gross salary is recorded in Appendix N. Ensure that your employer correctly accounts for the salary conversion in your payroll statement. Payments from the bAV are taxable in retirement and must then be declared in Appendix R-AV/bAV (for direct insurance, pension funds, pension foundations) or Appendix N (for support funds, direct commitments). More information on occupational pension schemes and taxes can be found on our blog.
Expert Knowledge: Legal Foundations and Recent Judgments
The tax treatment of retirement provision expenses is primarily regulated in paragraph ten of the Income Tax Act (EStG). Specifically for the Riester pension, paragraph ten a EStG is decisive, which defines the special expense deduction and subsidy promotion. The taxation of the pension benefits themselves falls under paragraph 22 EStG. In recent years, there have been important judgments by the Federal Fiscal Court (BFH) regarding the issue of so-called double taxation of pensions (e.g. Ref. X R 20/19 and X R 33/19). While these judgments confirmed the fundamental constitutionality of deferred taxation, they led to adjustments by the legislator, such as the full special expense deduction for retirement provision expenses since 2023. Our expert tip: Make use of the pre-filled tax return (VaSt) via ELSTER. Many data, such as contributions to basic provision, are electronically transmitted to the tax office by providers and can thus be directly adopted. This minimizes errors concerning the question 'where to enter retirement provision in the tax return'. Get comprehensive information about insurance and taxes.
Practical instructions for your tax return
First, gather all relevant documents from your pension contracts for the relevant tax year. These include annual statements from Riester providers (certificate in accordance with Paragraph 92 EStG), statements of benefits for pension receipt, and proof of Rürup contributions. Ideally, use tax software or ELSTER for your tax return. These programs often guide you precisely through the necessary forms and lines. For Riester contributions, you need to complete Annex AV. Rürup contributions and statutory pension insurance contributions belong to Annex Vorsorgeaufwand. In the case of occupational pension schemes through salary conversion, your gross salary in Annex N is already reduced. Pension payments are declared in Annex R, R-AV/bAV, or N, depending on the type. Always check the pre-filled electronic data from the tax office (VaSt) for completeness and accuracy. This ensures that all your expenses are correctly accounted for. Remember to include other deductible insurances.
nextsure: Your partner for a worry-free future
Proper management of your retirement provision in the tax return can bring you significant financial advantages. At nextsure, we understand that the details can be complex. As your digital insurance portal, we offer not only tailored insurance solutions but also informed information. We help you to recognize the importance of solid retirement provision and better understand the tax aspects. Although we are not allowed to provide tax advice, we support you with knowledge to ensure you are well informed. Optimising your retirement provision and making use of all tax advantages is crucial for a financially secure retirement. Trust in our expertise in the field of digital insurance solutions. We accompany you on the way to your optimal retirement strategy. Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete optimisation suggestions.
More useful links
Bundesfinanzministerium provides a BMF letter on the tax promotion of private pension schemes.
ELSTER provides support on the topic of pension provision for the year 2022.
ELSTER provides support on the topic of pension provision for the year 2023.
Bundesfinanzministerium offers a BMF letter regarding the notification of taxable benefits from pension contracts or occupational pensions from 2020.
Deutsche Rentenversicherung provides information on the taxation of pensions.
Deutsche Rentenversicherung offers a brochure on tax law for insured persons and pensioners.
Bundesregierung provides information on the topic of pension contributions.
Verbraucherzentrale offers a guide to occupational pensions.
FAQ
Which forms do I need for my pension in the tax return?
The most important forms are Anlage AV (for Riester pension), Anlage Vorsorgeaufwand (for Rürup pension and statutory pension contributions), and for pension benefits, the forms R, R-AV/bAV, or N, depending on the type of pension.
What is the difference between Anlage AV and Anlage Vorsorgeaufwand?
Anlage AV is specifically intended for contributions to the Riester pension to apply for government allowances or the special expenses deduction. Anlage Vorsorgeaufwand is used for claiming contributions to basic provision (e.g., statutory pension, Rürup pension) as well as other miscellaneous provident expenses.
What is the maximum amount I can deduct for my pension?
For basic provision (statutory pension, Rürup), up to €27,566 (single) or €55,132 (married) can be fully deducted as special expenses in 2024. For the Riester pension, the maximum special expenses deduction is €2,100 per person.
Are my pension contributions automatically reported to the tax office?
Yes, many providers of pension contracts (especially for Riester and Rürup pensions) electronically transmit the relevant data to the tax office (so-called eData). Nevertheless, you must fill out the corresponding forms in your tax return and check the data.
Do I need to declare my occupational pension in the tax return?
Yes, pension benefits from occupational pensions are taxable. Depending on the implementation method (e.g., direct insurance, pension fund, support fund), they must be entered in Anlage R-AV/bAV or Anlage N.
What happens if I forget to declare my pension in the tax return?
If you do not declare deductible pension expenses, you may miss out on a tax saving. For pension income, forgetting to declare it can lead to inquiries from the tax office and possibly to additional tax payments.
