Simple Q&A - iDeCo

[TokyoBoglehead]

Couple simple questions -
1. If I want to get my money on iDeco account become "tax free" - do I have to certainly BUY some asset?
Or, once I just transfer the money and they reach my iDeco account - they become tax free (means I can report to tax office I paid them to get this amount exempted, same I do with life insurance for example)
Asking because account is ready but I don't feel it's a good time to buy anything, now. Wonder if there's point in just transferring money from bank to iDeco.
2. I heard you can only buy few funds, on iDeco account. Could anyone please help with providing a link to list of such funds, for Monex?
Thanks!!

1. Yes, sign up and do not pick an investment. It will stay as cash, you can redistribute it later.

2. https://letmegooglethat.com/?q=%E3%83%9 ... 2%E3%81%AE (Feeling snarky )

[HeavyMetal]

Thanks!
Means the cash sent to iDeco gets tax free correct?
Regarding second question - I am zero kanji, could search by google jp but can't be sure that what I'd find be right. Hence the question

[TokyoBoglehead]

Thanks!
Means the cash sent to iDeco gets tax free correct?
Regarding second question - I am zero kanji, could search by google jp but can't be sure that what I'd find be right. Hence the question

Neither do I.

Google Translate and DeepL are recommended.

[RetireJapan]

Couple simple questions -
1. If I want to get my money on iDeco account become "tax free" - do I have to certainly BUY some asset?
Or, once I just transfer the money and they reach my iDeco account - they become tax free (means I can report to tax office I paid them to get this amount exempted, same I do with life insurance for example)
Asking because account is ready but I don't feel it's a good time to buy anything, now. Wonder if there's point in just transferring money from bank to iDeco.
2. I heard you can only buy few funds, on iDeco account. Could anyone please help with providing a link to list of such funds, for Monex?
Thanks!!

Yes, there is usually a cash fund in an iDeCo account, you can park your money there and then switch it to another fund within the account later if you want to (easy to do). This is called 'switching' by most providers.

I like this website to check list of funds: https://www.dcnenkin.jp/search/product. ... w&item=784

[beanhead]

Asking because account is ready but I don't feel it's a good time to buy anything, now. Wonder if there's point in just transferring money from bank to iDeco.

Each to their own and all, but most equity funds have fallen in value since the beginning of 2022. So they are now cheaper to buy. given that the general trend is for the stock market to go up over the long-term (10 years or more), surely now is an excellent time to buy equity funds...

[HeavyMetal]

Thanks for replies!
Got couple answers like I can park cash at iDeco account, only, that's not what I actually asked. Yes I know I can (hopefully) transfer and park, but question is - can I report this cash to tax office to get it tax-free?
Like, if I transfer 100,000 yen in total, to my iDeco account, in 2022. And I DO NOT buy any asset, in 2022. Can I still add this 100,000 yen to my 2022 tax form, to get them "tax free"? Or, how it works.

https://www.dcnenkin.jp/search/product. ... w&item=784

Thanks! This really helps.
One thing would like to clarify - this list has column for (msft translate) "operational and administrative expenses (trust fees)". It's divided to 2 columns, each pair has same numbers, like 0.15400% - 0.15400%
So, in this example, do I pay only 0.15400%,
or I pay both - 0.15400% AND 0.15400% means 0.308% in total?

[Beaglehound]

Thanks for replies!
Got couple answers like I can park cash at iDeco account, only, that's not what I actually asked. Yes I know I can (hopefully) transfer and park, but question is - can I report this cash to tax office to get it tax-free?
Like, if I transfer 100,000 yen in total, to my iDeco account, in 2022. And I DO NOT buy any asset, in 2022. Can I still add this 100,000 yen to my 2022 tax form, to get them "tax free"? Or, how it works.

https://www.dcnenkin.jp/search/product. ... w&item=784

Thanks! This really helps.
One thing would like to clarify - this list has column for (msft translate) "operational and administrative expenses (trust fees)". It's divided to 2 columns, each pair has same numbers, like 0.15400% - 0.15400%
So, in this example, do I pay only 0.15400%,
or I pay both - 0.15400% AND 0.15400% means 0.308% in total?

If you pay money into an ideco account, this is tax deductible, no matter which fund you choose. A cash deposit fund is no different to a bond/equity fund in this regard. It’s not like a separate account where you park the cash before you invest.

[RetireJapan]

Like, if I transfer 100,000 yen in total, to my iDeco account, in 2022.

You can't 'transfer' anything to iDeCo.

You decide on how much you are going to pay in per month (between 5,000 yen and the maximum based on your nenkin/work status). This amount is taken from your paycheck or your bank account each month. In November of so you get a starement from your provider to submit to the tax office.

[HeavyMetal]

Thanks for replies!! Really appreciate.
Ok clear. Good to know some cash can be deductible.

May I also ask about the part with "operational and administrative expenses (trust fees)", from here https://www.dcnenkin.jp/search/product. ... w&item=784
Do I pay both "nominal" and "substance" (msft translate), or only one of them?

[beanhead]

Not sure what "nominal" and "substance" fees are, but you only pay one.
See this, it is clearer here I think. One-off registration fee on the left then the monthly handling fee.
171yen per month, basically...

https://www.dcnenkin.jp/search/commission.php