Company allowing switch from DC Plan matching to iDeco

[sutebayashi]

I was on a DB plan with a previous employer.

When I quit the company, I had the option to get a lump sum payout, or I could go through administrative hassles with my new employer to get the funds transferred to the new employers scheme (which is a DC).

I was busy enough with paper work (which I detest), and took the lazy option of having the lump sum paid out to me. The one-time tax was not too much, less than 10% I think.

Naturally, I went and bought foreign asset mutual funds with the proceeds in my tokutei koza and I guess they must have gone up by 40% or more since then. (I don’t mind paying tax should I decide to sell those investments before my retirement date in order to use the cash, which I am not sure when it will be.)

My impression (unstudied) was that the DB was indeed like having a savings account with low paying interest, and it was a massive waste of principal.

On the other hand, I should have transferred the funds to my new companies DC, because I could have realized similar performance there, with more tax benefits.

But who knows. Maybe in future I will decide that I want that cash immediately.