Simple Q&A - NISA

[zeroshiki]

My "pick up your card" notice actually expired and I called my city hall to ask if it was still valid. They said it was still fine since they don't really throw cards away but because my zairyuu card also expired/renewed I needed to do the application again. So err yeah, get it before it expires.

[Bubblegun]

After 5 years you need to roll over the NISA yourself. You need to do it by December of the last year. It can be a bit complex.

The J-Nisa can also be rolled over, but as it is being cancelled I believe it will remain tax-free after 2023.

Thanks Kanto. Thats what I thought.( headaches in 5 years then)
BTW Sorry I added a second question above. Do you know anything about that?

I wonder why they're getting rid of the junior NISA? Maybe just replace it with a basic bog standard NISA for kids.

There are only about 200,000 active J-Nisa accounts.

1. Most people do not fill up their NISAs or their spouse's NISA, making the account moot.

2. It is a bit confusing to get running.

3. The marketplace is full of terrible insurance-saving schemes that parents think are a safer bet.

4. The money is locked away, and cannot be used for JH/SH fees.

1) wow only 200,000 J-Nisa Accounts. I wonder if parents just actually save in their adult ones instead of a J-NISA. very convoluted. Eg Rakuten account,Bridging, cash must be sent from kids postal/bank account, then go online an transfer it.
I can see the adult account being easier.

2)" It is a bit confusing." Now that is an understatement as it is clear as MUD.

3) Totally agee. Savings insurance schemes, sold by their banks or post offices, and the parents still can't get to it, and whats more the money is still secure sticking in a bank under the banking insurance scheme. Seems like a receiving peanuts.

4) Oh well,That can't be helped, but i heard the system has changed.

[Kanto]

I wonder why they're getting rid of the junior NISA? Maybe just replace it with a basic bog standard NISA for kids.


4) Oh well,That can't be helped, but i heard the system has changed.

Yes, but only AFTER canceling the program. The irony is now that it is being sun-setted the J-NISA actually became a way better, more flexible option for saving!

Probably infuriating those who avoided it initially as they needed to access the fund for private JH/HS.

Our son will hopefully gave 320万 + interest (4 years of contributions) by the end of the program in 2023. My hope is that will pay for college and then some in 18 years as it grows.

However, here is my question.


If I have another child, can I split that income in his J-Nisa between the two. Can the funds only be used for the child whose name is on the account?

[beanhead]

If I have another child, can I split that income in his J-Nisa between the two. Can the funds only be used for the child whose name is on the account?[/b]

You mean in the future when you come to actually use the money?
There is no limitation on how you use it. I guess that if you 'cash it in' it has to go to the bank account of Child 1 initially, but if you then choose to force Child 1 to give half to Child 2 (!), there is no way for the government to control that.
The only possible thing to consider is the tax on gift payments. Does that apply to minors?

[RetireJapan]

There is no limitation on how you use it. I guess that if you 'cash it in' it has to go to the bank account of Child 1 initially, but if you then choose to force Child 1 to give half to Child 2 (!), there is no way for the government to control that.
The only possible thing to consider is the tax on gift payments. Does that apply to minors?

Technically it belongs to Child 1 already (once it goes in their account). If they chose to give some of it to their sibling, they would have to make sure the gifts were under the 1.1m yen a year limit.

[Kanto]

There is no limitation on how you use it. I guess that if you 'cash it in' it has to go to the bank account of Child 1 initially, but if you then choose to force Child 1 to give half to Child 2 (!), there is no way for the government to control that.
The only possible thing to consider is the tax on gift payments. Does that apply to minors?

Technically it belongs to Child 1 already (once it goes in their account). If they chose to give some of it to their sibling, they would have to make sure the gifts were under the 1.1m yen a year limit.

Hmmm Good point, I should probably start earlier and do it gradually to avoid gift taxes.

My parents did something similar. I do not think of it as "his" money. It is "the" university fund.

The Japanese government and its obsession with gift taxes make this sort of family planning complicated.

Why not just emulate the Canadian RESP, or UK equivalent?

[fools_gold]

The Japanese government and its obsession with gift taxes make this sort of family planning complicated.

Why not just emulate the Canadian RESP, or UK equivalent?

There is an educational savings account into which parents or grandparents can put up to 15 million yen free of gift tax. There are quite a few restrictions on how you can spend the money though.

https://www.mizuho-tb.co.jp/souzoku/kyo ... zouyo.html
https://www.smbc.co.jp/kojin/kyouikushikin/

[Moneymatters]

The Japanese government and its obsession with gift taxes make this sort of family planning complicated.

Why not just emulate the Canadian RESP, or UK equivalent?

There is an educational savings account into which parents or grandparents can put up to 15 million yen free of gift tax. There are quite a few restrictions on how you can spend the money though.

https://www.mizuho-tb.co.jp/souzoku/kyo ... zouyo.html
https://www.smbc.co.jp/kojin/kyouikushikin/

Wasn't that programme ended in March 2021. Or was it given a stay of execution? As things so often are..

I swear parliment has a corridor dedicated for cans to be kicked down.

[fools_gold]

I heard they were going to get rid of it too, but it looks like it was extended to the end of March 2023.

[Alrik]

Quick question,

We've recently opened my wifes Tsumitate NISA and iDeco with Rakuten and so far no problems. We're in the process of opening mine, but I'm expecting to run into problems with my middle name as always.

I had a passive fund back in the UK with Vanguard and I had it set up to invest monthly into the FTSE Global all cap.

Is there a similar passive fund with either Rakuten or SBI? I'm willing to listen to recommendations if there is something better.

Thanks