Make optimal use of private retirement provisions in your tax return with ELSTER
17 Apr 2025
4
Minutes
Katrin Straub
CEO at nextsure
Private pension provision is an important building block for your financial future. However, many people do not know how to correctly declare this in their tax return, especially via ELSTER, and thereby save taxes. This article shows you what to look out for.
The topic in brief and concise terms
Contributions to the Riester pension (Annex AV) and Rürup pension (Annex Vorsorgeaufwand) can significantly reduce your tax burden.
Since 2023, retirement contributions are fully deductible up to high maximum amounts (e.g., 27,566 euros for singles in 2024).
Check the data electronically transmitted to ELSTER by insurers carefully to avoid errors and financial disadvantages.
Understanding the basics of private pension planning in the tax return
Private retirement provision is crucial for financial security in old age. Contributions to various pension models can reduce your tax burden. For the correct entry in your tax return via ELSTER, specific annexes like Annex AV for Riester contracts or Annex Vorsorgeaufwand for Rürup pensions and other care costs are relevant. It is important to know the differences and respective places of entry to take full advantage. For example, pensions from certified retirement contracts (Riester pension) must be declared in Annex R-AV/bAV. While digitalisation through ELSTER simplifies many things, it still requires care in data entry. This way, you can ensure that the tax office correctly takes into account your expenses and you do not pay more tax than necessary. Knowing the current maximum amounts and regulations is essential.
Quick Facts: The essentials of retirement planning and ELSTER at a glance
For quick orientation, we have summarised the key points for your private pension provision in the tax return using ELSTER. Many taxpayers do not fully utilise all tax saving opportunities.
Here are the key statements:
Contributions to the Riester pension are entered in Annex AV to secure bonuses and the special expenses deduction.
Rürup pension contributions (basic pension) are included in Annex Vorsorgeaufwand (line eight).
Traditional private pension insurances (concluded before 2005) can potentially be claimed as special expenses.
Since 2023, retirement provision expenditures up to a maximum amount of 26,528 euros (single) or 53,056 euros (married) are fully deductible. For 2024, this amount increased to 27,566 euros or 55,132 euros.
ELSTER enables the electronic transmission of data; often providers report the contributions directly to the tax office.
Annex R-AV/bAV is relevant for benefits from Riester pensions and occupational pensions during the payout phase.
This overview helps you set the right course for your tax return and not overlook any important items.
Practical Guide: Correctly Entering Riester Pension in ELSTER
The Riester pension is a popular form of private retirement provision that is promoted by the state. To benefit from the allowances and the additional special expenses deduction, the correct entry in the tax declaration via ELSTER is crucial. For this, you need the AV form. In this form, you provide details about your direct or indirect eligibility for funding and enter the relevant data of your Riester contract. The amount of contributions often does not need to be entered manually anymore, as the providers electronically transmit this data to the tax authorities. Nevertheless, it is advisable to check the transferred data. A maximum of 2,100 euros per year (including allowances) can be claimed as special expenses. The tax office conducts a favourable examination: If the tax advantage from the special expenses deduction is higher than the allowances, this is granted. Be sure to also include details about children, as they affect the amount of allowances. Careful processing of the Riester pension in the tax return ensures you receive the maximum funding.
Rürup pension (basic pension): How to benefit optimally from tax advantages
The Rürup pension, also known as a basic pension, is primarily aimed at the self-employed and high earners, but it is open to all taxpayers. The contributions to the Rürup pension can be claimed as special expenses in the pension expenses section of your tax return via ELSTER. As of 2023, these contributions are 100% deductible within the maximum amounts. For the year 2024, the maximum amount is 27,566 euros for singles and 55,132 euros for married couples. The entry is made in line eight of the pension expenses section. Here too, data is usually transmitted electronically by the provider to the tax office. The Rürup pension does not offer a lump sum payment, but instead provides a lifelong pension. Deferred taxation in retirement is a feature of this model. A thorough examination of the Rürup pension and its tax treatment is advisable in order to fully exploit its potential.
Further private pension agreements and their tax treatment
In addition to Riester and Rürup pensions, there are other forms of private retirement provision, such as traditional private pension insurance or unit-linked policies. The tax deductibility of these contracts during the accumulation phase is limited. Contributions to private pension insurance policies concluded after 31 December 2004 are generally not deductible as special expenses. An exception is made for old contracts (concluded before 2005): Here, contributions can be claimed as other pension expenses under certain conditions according to § 10 Abs. 1 Nr. 2 lit. b EStG 2004, but often only up to a maximum amount of 1,900 euros for employees or 2,800 euros for self-employed persons, which is often already exhausted by health and long-term care insurance contributions. During the payout phase, only the earnings portion of private pension insurance is taxed. This depends on the age at the start of the pension; for example, someone who retires at the age of 65 only has to tax 18 percent of the private pension. It is important to carefully check the details of your private pension insurance.
Expert Depth: Current Judgments and Design Tips for Your Retirement Planning
The tax treatment of private retirement savings is subject to frequent changes due to legislation and case law. An important issue is preventing double taxation of pensions. The Federal Fiscal Court (BFH) has addressed this in several rulings (e.g. Ref: X R 20/19). Although a fundamental double taxation was often not seen in the cases examined, the calculation methods were clarified. For old contracts of private pension insurance with capital election rights (concluded before 2005), the BFH ruled (Ref: VIII R 4/18) that pension payments can remain tax-free until the total amount of pensions paid matches the accumulated capital balance. Our expert tip: Regularly check whether your contract data has been correctly transmitted to the tax office and take advantage of the option to retrieve documents (pre-filled tax return) in ELSTER. This can help avoid errors. Also, note the deadlines: For the 2024 tax return, the submission deadline is 31 July 2025, if you prepare it yourself. If there are any uncertainties, consultation on insurance and tax matters can be worthwhile.
Avoid common mistakes when declaring private pension plans in ELSTER
When entering private pension schemes into the tax return via ELSTER, errors can easily occur, leading to financial disadvantages. A common mistake is forgetting the Anlage AV for Riester contracts, thus risking allowances and special expense deductions. Incorrect entries for combined products, such as a Rürup pension with occupational disability insurance, are also prevalent. Here, the total contribution must be correctly allocated (often in line eight of the Anlage Vorsorgeaufwand for the basic pension). Many taxpayers fail to check the plausibility of the electronically transmitted insurer data. Another issue is the failure to consider children in the Riester subsidy, which results in lower allowances. Additionally, maximum amounts are sometimes misinterpreted or old contracts are not correctly claimed as special expenses. A careful review of all entries and the use of help functions in ELSTER or a guide to entering pension schemes can help prevent these errors and optimize the tax burden.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive specific optimisation suggestions.
More useful links
ELSTER offers detailed information on this help page about electronic tax returns, particularly regarding advance payments.
ELSTER provides an overview on this information page about the ELSTER system and its features for simple electronic tax filing.
The insurers (GDV) provide information in this article about which insurance contributions are tax-deductible.
Federal Ministry of Finance provides a standard article on the topics of retirement provision and pensions, highlighting important tax aspects.
German Pension Insurance offers comprehensive details on their information page about various forms of retirement provision and the associated benefits.
FAQ
Which section in ELSTER is for my Riester pension?
For claiming your Riester pension contributions as special expenses and securing the allowances, use the AV attachment in your ELSTER tax return.
What is the maximum deductible amount for the Rürup pension in 2024?
In the year 2024, you can claim contributions to the Rürup pension (basic pension) as special expenses up to a maximum amount of 27,566 euros for singles or 55,132 euros for married couples at 100 percent.
What does deferred taxation mean in retirement planning?
Deferred taxation means that contributions to retirement savings are tax-advantaged during the accumulation phase (e.g., through special expense deductions), but pension payments in retirement must be taxed. This applies, for example, to statutory pensions, Riester and Rürup pensions.
Can I deduct contributions to a unit-linked pension insurance from taxes?
Contributions to unit-linked pension insurance contracts concluded after 2004 are generally not tax-deductible during the accumulation phase, unless it is a certified Riester or Rürup contract. During the payout phase, usually only the income share is taxed, or in some cases, the half-income procedure may apply in the case of a capital payout.
By when do I need to submit my tax return for 2024 to ELSTER?
If you prepare your tax return for the year 2024 yourself, the submission deadline is 31 July 2025. If a tax advisor or income tax assistance association prepares your return, the deadline is extended to 30 April 2026.
Where can I find my pension contributions on the income tax certificate for ELSTER?
You will find contributions to the statutory pension insurance on your payslip. For private contracts (Riester, Rürup), you will receive separate certificates from your provider, whose data is often already electronically transmitted to the tax office and retrievable in ELSTER.
