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Contributions to a retirement savings scheme are subject to withholding tax called retirement scheme contribution tax (RSCT) at a rate based on your income in the previous 2 years. If the rate is correct it will be treated as a final tax and you don’t need to do anything further.

If your notified rate is lower than the correct rate the amount contributed to the retirement savings scheme will be taxable income in your Individual income tax return - IR3. A credit will be allowed for the tax paid.

If you're required to include an amount of a contribution from a retirement savings scheme in your tax return you can leave it out of your income for Working for Families or student loan.

You can complete the ‘Adjust your income’ service in myIR or the Adjust your income - IR215 form.

Example

Trevor is a member of a Māori Authority that has made a contribution to a retirement savings scheme on his behalf. He notified the Māori Authority a tax rate lower than his correct retirement scheme contribution tax (RSCT) rate so the $550 contribution made to his account is taxable income. He includes it in his IR3.

Trevor can exclude the $550 from his income for the calculation of Working for Families. He will need to let us know about this adjustment.

Last updated: 22 Jul 2025
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