iDeCo and Year-End Tax Adjustment

[Riayain]

Hello! I'm an investing newbie who is in the process of opening up an iDeCo account with Rakuten.

One thing I've been pondering on is how 年末調整 (year-end tax adjustment) will work. I'm reluctant to ask my current company to do the whole 給料天引き (taking directly from my wages) for various reasons. So for now, I've selected to pay via 口座引き落とし (directly taken from bank account).

To be able to receive the 所得控除 (tax deduction), would I have to file the whole 年末調整 thing myself? Up until now, my employer's been doing it for me (kind of?) through MoneyForward. We basically fill in the information, but the whole process in handled online. I've been reading up on the manual and there does appear to be a section where you can fill in the 個人型年金加入者掛金 (private pension payments), so I guess I can just fill it in there... but am I missing anything? Are there any documents that I'll have to file myself in paper?

年末調整 is definitely far away, but I just want to be sure that I'm not missing anything so that I can get everything settled and know what I'm up against. It's the accountant in me that I never got to be, aha.

Thanks!

[RetireJapan]

If possible, it is much easier to get your employer to take the iDeCo payment from your salary. However, if they won't or you don't want to ask, you will have to file a tax return.

This blog post explains (with pictures) how the process works: http://www.tantonet.jp/qa/2263

[Tony]

If possible, it is much easier to get your employer to take the iDeCo payment from your salary. However, if they won't or you don't want to ask, you will have to file a tax return.

This blog post explains (with pictures) how the process works: http://www.tantonet.jp/qa/2263

If he's working full time for a company, then he just needs to write in a little box on his year end adjustment form, and hand in half of the postcard thing his broker sends him (which is actually how it is explained on the website you linked), he won't need to go and submit a tax return himself.

[RetireJapan]

Even better! Thanks Tony

[Kiyora999]

I work for a big company too and they don’t want to deduct the money directly for accounting reasons.

We use a year-end adjustment soft and they told me I would just need to check the little box for iDeco, write up the amount of the monthly contributions and give them the justificative paper I’ll receive from SBI a little before.

Then the tax deduction will be « refunded » on my next salary after the year-end calculation (I think it’ll be in December if I recall it well) in a separate column in my pay check.

Double-check with your company but I think you’ll be in the same case as me!