Changes to Child Taxable Accounts and J-NISA

[Kanto]

It seems that there have been some recent changes to the dependant taxable accounts and the J-NISA

The first change seems to be allowing withdrawals at the age of 18.

However, for the J-Nisa some sources seem to suggest you can withdraw from the J-NISA ANYTIME, after 2024.

So in winding down the J-NISA they have made it much more useful.

Can anyone shed more light on this?

https://beauty.biglobe.ne.jp/news/spot/ ... 974275165/
https://media.rakuten-sec.net/articles/-/29047
https://www.rakuten-sec.co.jp/web/info/ ... 15-02.html

[Kanto]

Just to be clear it seems that after 2024 J-NISA accounts will NOT be kicked out to the taxable account after 5 years.

Rather you can withdraw the principal anytime after 2024, or let them sit.

Does anyone read these changes differently?

Would this mean that the funds remain taxfree past the allotted 5 years, or that they would start accruing tax on capital gains after 5 years, but can be withdrawn at any time?

[mule96]

Just to be clear it seems that after 2024 J-NISA accounts will NOT be kicked out to the taxable account after 5 years.

Rather you can withdraw the principal anytime after 2024, or let them sit.

I also read it like that!

[fools_gold]

Just to be clear it seems that after 2024 J-NISA accounts will NOT be kicked out to the taxable account after 5 years.

Rather you can withdraw the principal anytime after 2024, or let them sit.

Does anyone read these changes differently?

Would this mean that the funds remain taxfree past the allotted 5 years, or that they would start accruing tax on capital gains after 5 years, but can be withdrawn at any time?

Here's an official page: https://www.fsa.go.jp/policy/nisa2/abou ... index.html

It looks like the funds can be held tax free until your child is 20. Early withdrawals aren't subject to capital gains tax, but it doesn't seem clear as to whether you can make a partial withdrawal or you have to sell everything and close the account. This article suggests that you have to sell everything: https://www.finasee.jp/column/3246/

[Bushiman]

Just a quick question on the JNISA...
I have not maxed out my kid's JNISAs.. After 2023, can I top those years up to ¥80万 like you can with the regular NISA?
Thanks...

[Kanto]

Just a quick question on the JNISA...
I have not maxed out my kid's JNISAs.. After 2023, can I top those years up to ¥80万 like you can with the regular NISA?
Thanks...

It is ¥80万 per year. After the year ticks over, you are unable to contribute to the previous year's allotment. Just like the standard NISA products.

You can contribute a total maximum amount of ¥240万 from now until the end of the program.

After 2023 no contributions can be made.

[Bushiman]

It is ¥80万 per year. After the year ticks over, you are unable to contribute to the previous year's allotment. Just like the standard NISA products.

Ahhh... Maybe I wasn't clear enough in my question... I'm not talking about topping up the previous year's JNISA allowance, but topping up once the 5yr cycle has come round for each of the 5 JNISA years you are allowed -like the regular NISA...

[Kanto]

It is ¥80万 per year. After the year ticks over, you are unable to contribute to the previous year's allotment. Just like the standard NISA products.

Ahhh... Maybe I wasn't clear enough in my question... I'm not talking about topping up the previous year's JNISA allowance, but topping up once the 5yr cycle has come round for each of the 5 JNISA years you are allowed -like the regular NISA...

Nope, no topping off as far as I understand. Get in before the end of the year.

After 2023 I believe our only option will be to sell. We are now allowed to sell before our child turns 18.

Some things remain unclear.
1. Can we sell stocks and bonds over time, or does it have to be all at once? In Yen or share amounts?
2. Has the tax-free period truly been extended?

If the answer to 1 and 2 is YES, then the J-NISA suddenly became 300% more attractive as an investment vehicle.

The allowance of early sales was also a huge plus.

[Bushiman]

It is ¥80万 per year. After the year ticks over, you are unable to contribute to the previous year's allotment. Just like the standard NISA products.

Ahhh... Maybe I wasn't clear enough in my question... I'm not talking about topping up the previous year's JNISA allowance, but topping up once the 5yr cycle has come round for each of the 5 JNISA years you are allowed -like the regular NISA...

Nope, no topping off as far as I understand. Get in before the end of the year.

After 2023 I believe our only option will be to sell. We are now allowed to sell before our child turns 18.

Some things remain unclear.
1. Can we sell stocks and bonds over time, or does it have to be all at once? In Yen or share amounts?
2. Has the tax-free period truly been extended?

If the answer to 1 and 2 is YES, then the J-NISA suddenly became 300% more attractive as an investment vehicle.

The allowance of early sales was also a huge plus.

Hmmm... From what I read here, the tax-free period will continue until the child turns 20...

[Kanto]

Ahhh... Maybe I wasn't clear enough in my question... I'm not talking about topping up the previous year's JNISA allowance, but topping up once the 5yr cycle has come round for each of the 5 JNISA years you are allowed -like the regular NISA...

Nope, no topping off as far as I understand. Get in before the end of the year.

After 2023 I believe our only option will be to sell. We are now allowed to sell before our child turns 18.

Some things remain unclear.
1. Can we sell stocks and bonds over time, or does it have to be all at once? In Yen or share amounts?
2. Has the tax-free period truly been extended?

If the answer to 1 and 2 is YES, then the J-NISA suddenly became 300% more attractive as an investment vehicle.

The allowance of early sales was also a huge plus.

Hmmm... From what I read here, the tax-free period will continue until the child turns 20...

It is unclear how the changes in the rules mesh with the original system.

Does it automatically go into a "継続管理勘定" after 2023? Or do have to decide between that and withdrawal? Can you withdraw from a 継続管理勘定 early, or is that a different system?

It does not seem to be clear to me.