Transferring from corporate DC pension plan to iDeCo after leaving Japan

[nrml92]

I left Japan in July 2024 after working there for 8.5 years. I moved to the UK now. I didn’t have time to transfer my DC plan to an iDeCo while I was still in Japan. I’ve got around to look at this closely now. My company partnered with MUFG to hold the funds and have six months to transfer it to an iDeCo else it moves to a general pension pool and I can’t touch it until 60.

1. I see few other posts that setting up an iDeCo can take a while. Just wanted to know if anyone has tried requesting the bank to hold of funds until the iDeCo is set up. Is there leniency there?

2. Can I set an iDeCo while being in UK? If yes, anything I should be aware of in terms of account set up?

Any other pointers to move to iDeCo smoothly would help! Thanks!

[Deep Blue]

Are you planning on returning to Japan to live?

[nrml92]

Not at this moment. I think I’ve closed my chapter in Japan for now.

[Deep Blue]

I thought the main benefit of iDeco is that it reduces your taxable income in Japan. If you have left, why are you thinking about switching? Lower costs or more choice in investments?

[Tkydon]

You should contact MUFG - They have an iDeCo offering.
https://www.tr.mufg.jp/tameru/401k/index.html

They should have provided information either directly or through the HR Department of you company about your options for the funds when you left the company.

If you are not Japanese, then you don't have the opportunity to make Voluntary Contributions to the Japanese National Pension or iDeCo from outside Japan.

Had you made the transfer before leaving Japan, you would have been able to establish the account and transfer the funds, but on leaving Japan you would not be able to make any further contributions, but would still be able to manage the assets already accumulated.

The problem now is that you are already outside Japan, and maybe no Provider would allow you to open an iDeCo Account from outside Japan.
You said you left Japan in July, but is it already longer than 6 months since you left the company? I think you need to make the application to start the process of migrating the funds within 6 months, and not actually complete the transfer within 6 months.

If you are not coming back to Japan, you can apply for a Refund of 5 years of National Pension Contributions
https://www.nenkin.go.jp/international/ ... yment.html

I am not sure if you can apply for a refund for your MUFG Pension Assets. You can ask them.

I will do some digging and come back with what I find.

[nrml92]

I left the company in July. So I have until Jan 2025 to complete this transfer from my company’s corporate DC to iDeCo. HR did send a letter after I left asking me to choose the financial institution by myself and transfer to iDeCo. I have accumulated these funds from my employee pension and it’s quite significant so was thinking if it’s wise to invest those accumulated funds and I’m aware I can’t contribute any further to this outside of Japan.

I did apply for lump sum withdrawal of my National Pension before I left. I’m expecting that to reach me by Dec this year. I was just pondering about what to do with the accumulated funds on my DC pension from my company. Hence this post.

Thanks for all the advice so far!