What it says, really.
I am a second-wage earner (currently on maternity leave) who is married; my husband earns a lot more than me, but is lazy about "doing things" with our money, so I am having to take a deep breath and get things sorted out myself...!
I set up a small iDeCo last year for myself. By "small," I mean just 15,000 a month to start off with, coming out of my own salary--the idea being that once I have got it going, I can expand as I want to.
Having done some research, I think I would like a big chunk of "our" money (mostly earned by the husband!) to go through iDeCo (we will also do JR NISAs for our daughters). But what should we be doing? Should I just make arrangements for money from BOTH of our accounts to go into my iDeCo--and if so, how does that work---will SBI (my broker) be OK with money coming in from two accounts? Or should we make a new, separate iDeCo for his money and keep mine going as well? I am confused about how this works and what would be the best arrangement.
I don't know much about investment but am doing my best to learn--hope for some helpful responses here.
Please help an idiot--One or two iDeCo accounts for a husband and wife?
Re: Please help an idiot--One or two iDeCo accounts for a husband and wife?
I think of RetireJapan as the iDeCo expert so wait for Ben's advice, but I think the iDeCo is individual and there would be advantages to you for your husband to start his own iDeCo with (taxfree!) contributions withheld from his salary. Just a few other things to consider:
1) Like you I do Junior NISA for my kids and I'm pretty happy with the system.
2) Have you considered starting NISA accounts for yourself and your husband? These would also be in your individual names. One nice thing about the NISA system is that you don't even need earned income to fund it and unlike the Junior NISA you could take money out anytime (e.g. in case you suddenly need the money) simply by selling whatever you bought.
3) You might consider either the regular or Tsumitate version of NISA although if like me you are from the US the Tsumitate version gets very complicated for your US tax return.
1) Like you I do Junior NISA for my kids and I'm pretty happy with the system.
2) Have you considered starting NISA accounts for yourself and your husband? These would also be in your individual names. One nice thing about the NISA system is that you don't even need earned income to fund it and unlike the Junior NISA you could take money out anytime (e.g. in case you suddenly need the money) simply by selling whatever you bought.
3) You might consider either the regular or Tsumitate version of NISA although if like me you are from the US the Tsumitate version gets very complicated for your US tax return.
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Sybil
Re: Please help an idiot--One or two iDeCo accounts for a husband and wife?
You can't expand much more. The limit is 23,000 yen a month.
Not allowed. Money funding iDeCo accounts can't come from other people's bank accounts.
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RetireJapan
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Re: Please help an idiot--One or two iDeCo accounts for a husband and wife?
Your max limits will depend on what kind of nenkin you pay. The main benefit of iDeCo is to reduce income taxes, so if your income taxes are not high NISA might be a better option (more flexible, etc.).
As Sybil said, iDeCo accounts are individual and the money must come from that person's account (or salary deduction if your employer offers it). If your husband's marginal tax rate is higher than yours iDeCo will make more sense.Serena-ko wrote: ↑Wed May 29, 2019 2:00 am Having done some research, I think I would like a big chunk of "our" money (mostly earned by the husband!) to go through iDeCo (we will also do JR NISAs for our daughters). But what should we be doing? Should I just make arrangements for money from BOTH of our accounts to go into my iDeCo--and if so, how does that work---will SBI (my broker) be OK with money coming in from two accounts? Or should we make a new, separate iDeCo for his money and keep mine going as well? I am confused about how this works and what would be the best arrangement.
Sounds like NISA accounts might be a good option for you. These are also individual, one per person
English teacher and writer. RetireJapan founder. Avid reader.
eMaxis Slim Shady
eMaxis Slim Shady
Re: Please help an idiot--One or two iDeCo accounts for a husband and wife?
Maybe this is a silly question, but I assume it's possible to have an iDeCo/DC account PLUS a NISA account at the same time. Am I correct?RetireJapan wrote: ↑Thu May 30, 2019 12:34 am Your max limits will depend on what kind of nenkin you pay. The main benefit of iDeCo is to reduce income taxes, so if your income taxes are not high NISA might be a better option (more flexible, etc.).
Re: Please help an idiot--One or two iDeCo accounts for a husband and wife?
Yes, you can ave both accounts. Only requirement for a NISA is being 20 years old or older and living in Japan. (Not even a work or income requirement.)I assume it's possible to have an iDeCo/DC account PLUS a NISA account at the same time. Am I correct?
Re: Please help an idiot--One or two iDeCo accounts for a husband and wife?
Sorry to reply so late!
Thank you very much to everyone who responded--this is really helpful and much appreciated.
I see--so iDeCo will not accept money from two bank accounts (how I wish Japan would have joint bank accounts like the rest of the world....!)
So whatever we do, it will need to be separate. Either two iDeCo or two NISA accounts. This is helpful, thanks. I am going to talk to the husband about doing this.
Thank you very much to everyone who responded--this is really helpful and much appreciated.
I see--so iDeCo will not accept money from two bank accounts (how I wish Japan would have joint bank accounts like the rest of the world....!)
So whatever we do, it will need to be separate. Either two iDeCo or two NISA accounts. This is helpful, thanks. I am going to talk to the husband about doing this.
