Putting money in Junior NISA

[Randomletters]

Hi all,

New member here - I'm sure to be asking something stupid, naive, or trivial, but....

Anyway, I have just got around to setting up a Junior NISA for my kid. I want to put money in, but I'm a little unsure about the process (Rakuten portal).

My concern is over gift tax and such complications. Is it allowed for me to transfer money from my account (e.g. by Furikomi) to her Securities Account, or must the transfer occur from her bank account?

Anyone who has experience or advice would be most appreciated!

[RetireJapan]

For my grandkids' NISA accounts, the easiest thing was to put the money in their bank account then transfer to Rakuten.

As long as the child is not receiving more than 1.1m yen a year in gifts, they don't need to worry about gift tax.

[Randomletters]

For my grandkids' NISA accounts, the easiest thing was to put the money in their bank account then transfer to Rakuten.

As long as the child is not receiving more than 1.1m yen a year in gifts, they don't need to worry about gift tax.

Awesome - thank you! That makes life pretty easy - she has more than enough money in her account to max out J-NISA this (sadly final) year.

I'm pretty new to this whole process, and while it's pretty exciting to be making a start on taking control of my / my family's future finances, doing any kind of legal stuff in Japanese can be intimidating. Reading this forum (and buying Ben's excellent NISA guide) has make the process a lot less daunting.

[RetireJapan]

Awesome - thank you! That makes life pretty easy - she has more than enough money in her account to max out J-NISA this (sadly final) year.

Congratulations on getting the Junior NISA set up and maxed out in time -your daughter will thank you for it, especially if you persuade her to leave it invested for decades

[Tkydon]

Hi all,

New member here - I'm sure to be asking something stupid, naive, or trivial, but....

Anyway, I have just got around to setting up a Junior NISA for my kid. I want to put money in, but I'm a little unsure about the process (Rakuten portal).

My concern is over gift tax and such complications. Is it allowed for me to transfer money from my account (e.g. by Furikomi) to her Securities Account, or must the transfer occur from her bank account?

Anyone who has experience or advice would be most appreciated!

Your kid can receive upto Y1.1M in gifts in a tax year free of Gift Tax, so the NISA contributions will not reach that threshold.

This is the last year of Junior NISA. It will not be available next year. I don't know what will replace it.

[RetroNewbie]

With this being the last year of the Junior NISA, is it worth taking advantage of it before it's gone? Or is it too late to be worth it?

The wiki says that funds will be transferred out to a regular account in 2024, so any benefits would only be for this year, right?

[Randomletters]

With this being the last year of the Junior NISA, is it worth taking advantage of it before it's gone? Or is it too late to be worth it?

The wiki says that funds will be transferred out to a regular account in 2024, so any benefits would only be for this year, right?

As I understand it, this is the last year you can put money in, but that money can stay in for up to 20 years.
The rules change so you can take it out from Jan 1, 2024, but you're under no obligation to.

I have filled my kid's JNISA already, and it'll stay there until she decides what to do with it at 18.

[adamu]

The wiki says that funds will be transferred out to a regular account in 2024, so any benefits would only be for this year, right?

That doesn't sound accurate. Will take a look this weekend.

Here's the Japanese from the FSA

＊4 …2024年以降、ジュニアNISAでは、新規購入ができません。なお、2024年以降、当初の非課税期間（5年間）の満了を迎えても、18歳になるまで引き続き非課税で保有できます。

https://www.fsa.go.jp/policy/nisa2/abou ... index.html

[sutebayashi]

With this being the last year of the Junior NISA, is it worth taking advantage of it before it's gone? Or is it too late to be worth it?

I have three kids 10 and under, so thinking about this year only, it’s 800,000 x 3 = 2.4 million invested tax free for at least 8 years. It’s definitely worth it for me.

If you have money to gift your kid, and time and will to set it up, I think it is worth it.

Since there can be no selling and buying post 2024 in jnisa, for this year, I have my kids jnisa all investing in an all country stocks fund, so hopefully there will be some good times for them in future should they want to cash out… pray for world peace, technological breakthroughs and good economic policy! (I’d put money on the middle one but not the other two…)

[RetroNewbie]

Wiki says:

No withdrawals in principle until 18… however, when the JNISA ends in 2023, funds will be transferred to a regular securities account, where withdraws are permitted.

But if it's possible to withdraw before 18, and it's *can* be transferred instead of *will* be transferred then it'd definitely be worth it.