NISA rollover question

[eagleyes]

Thanks for this post.

One question: Do you have to roll over the entire amount for a given year or can you choose which items to be rolled over and which items to be transferred to tax account? If the later, It will be good to adjust strategy and maximize the use of NISA depending on the market price point for different ETFs/funds.

[TokyoWart]

Thanks for this post.

One question: Do you have to roll over the entire amount for a given year or can you choose which items to be rolled over and which items to be transferred to tax account? If the later, It will be good to adjust strategy and maximize the use of NISA depending on the market price point for different ETFs/funds.

For my NISA account at Nomura they send me a form around August of the year before the rollover would occur and it allows me to choose which individual positions will or will not be rolled over. I think they ask that I submit my reply by the end of November and if I don't reply the default is that nothing is rolled over.

[RetireJapan]

Same with Rakuten, except it's done online now (see blog post for details). You can choose which investments to roll over (any, all, or none).

[Bushiman]

Same with Rakuten, except it's done online now (see blog post for details). You can choose which investments to roll over (any, all, or none).

So, if you only choose to rollover some of your investments, does that then free up space to top up the year with other investments?
Say I had ¥500,000 of the eMaxis Slim All Country Fund, and ¥100,000 of the eMaxis Slim Developed Country Government Bond Fund...
If I only rolled over the All Country Fund, could I now top up the year with ¥700,000 of investments to max out the ¥1.2million yearly limit?

[RetireJapan]

Yes, that is how it works if you roll over less than the annual allowance -you fill up the next NISA up to the current value of your investments and can then use the rest of your allowance normally.

The real benefit is that you can roll over the full amount, even if it is worth more than 1.2 million. Due to some extreme luck on my part, I'll be rolling over almost 2.5m this year into my 2021 NISA.

[eyeswideshut]

Yes, that is how it works if you roll over less than the annual allowance -you fill up the next NISA up to the current value of your investments and can then use the rest of your allowance normally.

The real benefit is that you can roll over the full amount, even if it is worth more than 1.2 million. Due to some extreme luck on my part, I'll be rolling over almost 2.5m this year into my 2021 NISA.

2.5 million wow that is 110% over 5 years - not bad!

[adamu]

Pretty risky as it's mostly in Apple if I recall. If I were you I'd have sold it and taken the tax free capital gains before Apple gets sued and broken up for antitrust by the US Government.

...but what do I know. I sold bitcoin way before it hit ¥1M. The Apple price could also double next year. Individual stocks

[Kanto]

With NISA ending in 2023, and New NISA running for only 5 years after that is anyone here considering switching? The New Nisa seems to hint that only the Tsumitate with exist after 2028.


Rule: 令和５年（2023年）まで ⇒ 令和10年（2028年）まで（５年間措置).

https://www.fsa.go.jp/news/r1/sonota/zeikaitaiko01.pdf

[RetireJapan]

Pretty risky as it's mostly in Apple if I recall. If I were you I'd have sold it and taken the tax free capital gains before Apple gets sued and broken up for antitrust by the US Government.

They'd have to take down Google, Amazon, and Facebook before Apple methinks. I only bought it 'cause it started paying a dividend!

[RetireJapan]

With NISA ending in 2023, and New NISA running for only 5 years after that is anyone here considering switching? The New Nisa seems to hint that only the Tsumitate with exist after 2028.

That seems like the plan, but who knows what will happen between now and then. Suga seems fairly pragmatic and detail oriented, maybe he'll get them to fix NISA to remove the stupid time limits