IDeCo changes December 2024

[TunaSki]

Currently, since October 2022 they have the ability to contribute to the matching DC or iDeCo. So

Employer contribution to DC is ¥15,000
Employee contribution to DC is ¥15,000

Or

Employer contribution to DC is ¥15,000
Employee contributions to iDeCo is ¥20,000

But I Was reading this https://www.mhlw.go.jp/stf/seisakunitsu ... 00002.html and this https://dc.rakuten-sec.co.jp/about/revised/202412/

Highlighting the upcoming changes to iDeCo end of this year.

Does this mean people who are enrolled in a matching type company DC with their employer will be able to contribute to both the matching DC and up to ¥20,000 iDeCo at the same time simultaneously? As long as the total does not exceed ¥55,000 per month.

Meaning from December 2024 can they do the following?:

Employer contributions to DC is ¥15,000
Employee matching contributions to DC is ¥15,000
Employee contributions to iDeCo is ¥20,000

¥50,000 total (¥35,000 from employee)

[TunaSki]

For anyone interested, I asked my HR and unfortunately matching type DCs won’t change.

So for matching type DCs the options still remain as:

- Match up to what employer pays in, or
- up to ¥20,000 into iDeCo

Cannot do both simultaneously

[zeroshiki]

The 20k limit is what's annoying to me so I'm stuck with my company DC. Luckily they finally introduced a low cost SP500 fund this year so I switched everything to that.

[zeroshiki]

Seems like the FSA is going to officially request an increase to the limit. Still a long way for anything to happen but we thought NISA wouldn't get improved this much either.

https://news.yahoo.co.jp/articles/4e9f5 ... d9fe79cdac

[TunaSki]

I’d just like the ability to be able to contribute to the matching DC and Ideco simultaneously

But if they did ever increase it that would be great.

I’ve been doing the up to ¥20,000 into iDeCo since October 2022 law change (for a few reasons) and I have just been keeping the iDeCo going on the hope these December 2024 law changes worked in my favor, as iDeCo takes age to do stuff, so I didn’t want to change it until I knew what was going on with the changes.

My employer does actually pay in a little more than ¥20,000 now. So tempted To stop iDeCo and start matching the DC to maximize my contributions now.

[Roger Van Zant]

I am capped at a paltry 12,000 yen per month for my iDeCo! All because my employer offers a DB scheme.
You don't even have to be paying into it; the mere fact the company offers it means employees are limited to 12,000 yen per month for their iDeCo!

I do choose to pay into the DB scheme (10,000 yen per month, employer pays 500 yen), but still, 12,000 yen seems stupidly low for the iDeCo limit.

Naturally, the DB scheme is run by some shady investment firm over which I have zero control or say.

And I can't even quit unless I leave this company or hit retirement.

I wish I had never started paying in, and was instead just adding that monthly 10,000 yen to my NISA.

[Max]

When the contribution limits go up in December, will it be a simple matter to raise your contributions if you wish to, or will it be a bureaucratic pain? Anyone have any info on this?

[RetireJapan]

When the contribution limits go up in December, will it be a simple matter to raise your contributions if you wish to, or will it be a bureaucratic pain? Anyone have any info on this?

I'm guessing you'll need to send in a paper form to change your monthly payment amount.