Simple Q&A - iDeCo

[zeroshiki]

iDECO is tax advantaged to your income tax so I assume pension has nothing to do with it.

[RetireJapan]

Although it’s quite possible I’m completely ineligible in the first place as I’m current on a waiver and am exempt from paying pension due to low income…

Yes, you need to be paying nenkin in full to be eligible to pay into iDeCo.

[MisoSoup]

Although it’s quite possible I’m completely ineligible in the first place as I’m current on a waiver and am exempt from paying pension due to low income…

So in short you don't have enough money to pay the basic nenkin fees but you have spare cash to pay for the iDeCo pension scheme..... And you are in the Nisa threads saying that you want to invest 20,000 yen in a Nisa (which is less than than the regular pension scheme).

You come across as someone is trying to game the system.

[Kanto]

Although it’s quite possible I’m completely ineligible in the first place as I’m current on a waiver and am exempt from paying pension due to low income…

So in short you don't have enough money to pay the basic nenkin fees but you have spare cash to pay for the iDeCo pension scheme..... And you are in the Nisa threads saying that you want to invest 20,000 yen in a Nisa (which is less than than the regular pension scheme).

You come across as someone is trying to game the system.

This comes across as extremely judgemental. OP has been very open about his financial situation in the forum. I see nothing wrong with asking about the specifics of a system, and whether or not he can take part.

[KCLenny]

Although it’s quite possible I’m completely ineligible in the first place as I’m current on a waiver and am exempt from paying pension due to low income…

So in short you don't have enough money to pay the basic nenkin fees but you have spare cash to pay for the iDeCo pension scheme..... And you are in the Nisa threads saying that you want to invest 20,000 yen in a Nisa (which is less than than the regular pension scheme).

You come across as someone is trying to game the system.

Not at all. I haven’t gone to the pension office saying “woe is me I’m so poor please let me off my nenkin payments”. When I first got to Japan I got a document saying I’d be exempt from paying for 6months to a year due having no wages the previous year to go off. After that exemption had expired a year later, I got a letter, I went to the ward office with it and asked what it meant and gave them all my details (work hours, income etc) and they said to fill out another exemption form to see if I was still eligible. A few weeks later I got the confirmation. That was back in may or April I believe.
I never said that I can’t afford to pay the nenkin. The Japanese government has literally deemed me unable to afford it. As for being able to afford ideco, who said I could afford it? I literally asked how much a minimum payment would be because I honestly have no idea if it is something I can afford. After my health insurance, rent and living costs I possibly have around ¥50,000 left in a good a month. I could just let that money sit in a regular account like I have done for the last year, or I could enquire as to other options for that money. If the exemption suddenly expires for me, I can probably afford it without much problem, if the exemption expires for my wife (who doesn’t and can’t really work due to mental health issues and autism), then I probably have to look into giving something like the NISA up.

This comes across as extremely judgemental. OP has been very open about his financial situation in the forum. I see nothing wrong with asking about the specifics of a system, and whether or not he can take part.

Thank you.

Sorry for asking questions. Feel like I always have to justify my position here recently.

[TBS]

Sorry for asking questions. Feel like I always have to justify my position here recently.

Don't feel sorry. Your posts on here have been exceptionally open and honest, and I've been heartened by them. All power to you.

[RetireJapan]

You come across as someone is trying to game the system.

This kind of comment is not appropriate for this forum. Let's keep things constructive/helpful/friendly.

The rules for getting a partial or full exemption from kokumin nenkin are very clear, and if you qualify you still get nenkin eligibility. Nothing wrong with applying for benefits you are entitled to.

[Beaglehound]

Sorry for asking questions. Feel like I always have to justify my position here recently.

Don't feel sorry. Your posts on here have been exceptionally open and honest, and I've been heartened by them. All power to you.

Agree with this.

[runmanTX]

Could someone advise me on how, as a US citizen, I can open an Ideco account using cash only payments?

1. My understanding is that I must pay in for 10 years (now 53yo) so my "cash investments" could be withdrawn at age 63, correct?

2. Not sure of my Japan tax bracket, but lowering my tax would be basically the only reason to open an Ideco, right?

3. Would it be better to invest that money in my current route of ETF index funds in the US market?

Are there any other advantages / disadvantages of Ideco I am missing?

Thanks in advance.

[Beaglehound]

Could someone advise me on how, as a US citizen, I can open an Ideco account using cash only payments?

1. My understanding is that I must pay in for 10 years (now 53yo) so my "cash investments" could be withdrawn at age 63, correct?

2. Not sure of my Japan tax bracket, but lowering my tax would be basically the only reason to open an Ideco, right?

3. Would it be better to invest that money in my current route of ETF index funds in the US market?

Are there any other advantages / disadvantages of Ideco I am missing?


Thanks in advance.

There is no requirement to pay in for ten years. If you pay in until you are 60, for example, you would be able to withdraw at 62. See the age of eligibility table three quarters of the way down.

https://www.ideco-koushiki.jp/english/