jNISA mishap advice

[Moneymatters]

Is this statement on the wiki incorrect?

The investments can remain invested tax free until the child turns 18, even after 2023.
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.

https://retirewiki.jp/wiki/Junior_NISA

I've not been following but if somebody who knows what they're talking about could update it, Karma will shine down upon you.

Yes, it's incorrect. Funds will not be transferred, but will remain tax free until the the age of 18.

At 18 the funds will be dropped into a taxable. No rollovers.
..

I don’t what to be “that guy”. Ha. Who am I kidding. Now I want a t-shirt with “That guy” on it.

Anyway. I think the limit is age 18 and at least 5 years invested as NISA.

So if the kid was 17 last year and invested into J-NISA that year’s investment will stay as NISA for a few more years even passed 18. Even though they get a password and access to it at 18.

My son has J-NISA investment that won’t leave NISA until starting next year when the first year exceeds the 5 year limit.. he will turn 20 this year..

Obviously by 2028 This becomes a moot point.

[Tsumitate Wrestler]

Is this statement on the wiki incorrect?



https://retirewiki.jp/wiki/Junior_NISA

I've not been following but if somebody who knows what they're talking about could update it, Karma will shine down upon you.

Yes, it's incorrect. Funds will not be transferred, but will remain tax free until the the age of 18.

At 18 the funds will be dropped into a taxable. No rollovers.
..

I don’t what to be “that guy”. Ha. Who am I kidding. Now I want a t-shirt with “That guy” on it.

Anyway. I think the limit is age 18 and at least 5 years invested as NISA.

So if the kid was 17 last year and invested into J-NISA that year’s investment will stay as NISA for a few more years even passed 18. Even though they get a password and access to it at 18.

My son has J-NISA investment that won’t leave NISA until starting next year when the first year exceeds the 5 year limit.. he will turn 20 this year..

Obviously by 2028 This becomes a moot point.

Are you sure about that? Many sites seem to suggest at the age of 18 it get immediately bumped into the taxable.

The rules are changed in January 2024.

Perhaps you can check your son's account for us , and the wording at your Sec.?

[RetireIn10]

Thank you for your insight everyone. I'm not sure what I will do, but losing out on a potential 120% gain (8%/year x 15 (number of years until my son's 18th bday) seems sad to me. It's a lose-lose, but I'll have to live with my decision.

[Tsumitate Wrestler]

Thank you for your insight everyone. I'm not sure what I will do, but losing out on a potential 120% gain (8%/year x 15 (number of years until my son's 18th bday) seems sad to me. It's a lose-lose, but I'll have to live with my decision.

It doesn't hurt to contact them directly. They might offer another solution.

[Moneymatters]

Yes, it's incorrect. Funds will not be transferred, but will remain tax free until the the age of 18.

At 18 the funds will be dropped into a taxable. No rollovers.
..

I don’t what to be “that guy”. Ha. Who am I kidding. Now I want a t-shirt with “That guy” on it.

Anyway. I think the limit is age 18 and at least 5 years invested as NISA.

So if the kid was 17 last year and invested into J-NISA that year’s investment will stay as NISA for a few more years even passed 18. Even though they get a password and access to it at 18.

My son has J-NISA investment that won’t leave NISA until starting next year when the first year exceeds the 5 year limit.. he will turn 20 this year..

Obviously by 2028 This becomes a moot point.

Are you sure about that? Many sites seem to suggest at the age of 18 it get immediately bumped into the taxable.

The rules are changed in January 2024.

Perhaps you can check your son's account for us , and the wording at your Sec.?

Yes. My son turned 19 last year. Nothing has been kicked out to a taxable account yet.
J-NISA was originally a 5 years with roll over system the same as the ippan NISA. So each year has a minimum of 5 years no matter how old the owner of the account is.

I’m thinking just a plain black T-Shirt with white lettering. Suggestions for the font?

[RetireJapan]

I’m thinking just a plain black T-Shirt with white lettering. Suggestions for the font?

RetireJapan handwriting sans serif

[beanhead]

Are you sure about that? Many sites seem to suggest at the age of 18 it get immediately bumped into the taxable.

The rules are changed in January 2024.

Perhaps you can check your son's account for us , and the wording at your Sec.?

This is what happens at 18

1)new password is issued (certainly for Rakuten)

2)new NISA is automatically set up in the following January

3)existing junior NISA accounts are left as they are, for the maximum of 5 years.

So an 18-year-old who has previously had junior NISAs will then have a new NISA, a tokutei account, and the legacy junior NISAs when they (or in my case, when I ) look at the account overview.

As discussed elsewhere, for under-18s, their junior NISAs remain, but the only account you can add to until 18 is the tokutei account. There is no tax-advantaged option.

[Tsumitate Wrestler]

Are you sure about that? Many sites seem to suggest at the age of 18 it get immediately bumped into the taxable.

The rules are changed in January 2024.

Perhaps you can check your son's account for us , and the wording at your Sec.?

This is what happens at 18

1)new password is issued (certainly for Rakuten)

2)new NISA is automatically set up in the following January

3)existing junior NISA accounts are left as they are, for the maximum of 5 years.

So an 18-year-old who has previously had junior NISAs will then have a new NISA, a tokutei account, and the legacy junior NISAs when they (or in my case, when I ) look at the account overview.

As discussed elsewhere, for under-18s, their junior NISAs remain, but the only account you can add to until 18 is the tokutei account. There is no tax-advantaged option.

I was 100% unaware of the weird loophole here. Interesting stuff. It was not spelled out in most of the literature I found.

Thank you "that guy".

[Moneymatters]

Are you sure about that? Many sites seem to suggest at the age of 18 it get immediately bumped into the taxable.

The rules are changed in January 2024.

Perhaps you can check your son's account for us , and the wording at your Sec.?

This is what happens at 18

1)new password is issued (certainly for Rakuten)

2)new NISA is automatically set up in the following January

3)existing junior NISA accounts are left as they are, for the maximum of 5 years.

So an 18-year-old who has previously had junior NISAs will then have a new NISA, a tokutei account, and the legacy junior NISAs when they (or in my case, when I ) look at the account overview.

As discussed elsewhere, for under-18s, their junior NISAs remain, but the only account you can add to until 18 is the tokutei account. There is no tax-advantaged option.

I was 100% unaware of the weird loophole here. Interesting stuff. It was not spelled out in most of the literature I found.

Thank you "that guy".

OK. I know I’m being petty now. But that isn’t gonna stop me..

This:

“3)existing junior NISA accounts are left as they are, for the maximum of 5 years.“

Should ackchyually state.

“ 3)existing junior NISA account years, that are yet to have benefitted from at least 5 years of tax free investment, are left as they are until they reach that five year threshold.”

[beanhead]

OK. I know I’m being petty now. But that isn’t gonna stop me..

This:

“3)existing junior NISA accounts are left as they are, for the maximum of 5 years.“

Should ackchyually state.

“ 3)existing junior NISA account years, that are yet to have benefitted from at least 5 years of tax free investment, are left as they are until they reach that five year threshold.”

Haha. We are gonna need to get you a new T-shirt

Yes, your point is correct.
My first ones were created in 2021 so get to that mark at the end of 2025.
Then the little darlings will blow it on yearly passes to Disneyland or new iPhones or whatever