iDeCo classification for employee with side-business (as 個人事業)

[alejandro]

Tried the http://dc-center.jp/checker/ website to simulate tax impact. There are 4 classifications: Self-employed, company employee, civil servant, housewife. I don't seem to easily classify under any as I am a company employee with a side (real estate rental) business. Company employee category doesn't fully capture my situation, and self-employed category requires that one has Kokumin nenkin, which I don't have since I have a pension scheme with my company.

Made me wonder whether I, as a company worker with other income, have to consider iDeCo from some other additional considerations. Any leads appreciated.

[RetireJapan]

Hi alejandro

This confused me for a long time too. Then I realised that your job has no bearing on the matter: it is the type of pension you pay that determines your iDeCo eligibility and allowance.

The government is so out of touch that it assumes everyone is in kosei nenkin, as shown by the description of kokumin nenkin as being 'for entrepreneurs and unemployed people'.

Of course in reality a lot of people are not enrolled in kosei nenkin by their employer so default to kokumin or nothing.

So if you are paying into kosei nenkin your monthly max for iDeCo would be 23,000 (unless you also have a company DC pension, in which case you will have to check whether that prevents you from using some or all of your iDeCo allowance).

Hope that helps!

[alejandro]

Gotcha. Crystal.