RetireJapan

Besides the contribution changes, I was surprised to see them talking about 課税強化 with respect to iDeCo on the telly the other day - I gather a 5 year rule is going to be changed so that tax deductibility for iDeCo is going to kick after 10 years, meaning if you want your iDeCo money sooner you’ll potentially face a higher tax payment on the 退職金 (if I understood it right).

It miffs me really because iDeCo is supposed to be tax advantaged, but one has to do the mental gymnastics of understanding how that actually works to maximize the benefit, and I’m feeling too lazy to do so. (I spend enough effort trying to maximize my furusato nozei donations)

I’m hoping that it is not so bad and not likely to impact me, but then if they have fiddled with the rules once here the probability is that they will fiddle with the rules again by the time I am basking in retirement.

sutebayashi wrote: ↑Wed Dec 25, 2024 5:12 am It miffs me really because iDeCo is supposed to be tax advantaged, but one has to do the mental gymnastics of understanding how that actually works to maximize the benefit

This is actually a huge problem. If the government wants people to use these schemes, they have to be easy to understand, and this is the opposite of that.

There's been a lot of stuff on social media since this was announced complaining about iDeCo, with the result that a lot of people are going to be put off.

Yeah my policy platform is tax system simplification would have significant benefits, but it is what is.

If one wants to get the iDeCo money quickly, then maybe the dream plan is to FIRE by 50, receive any retirement payment then, and then max the retirement deduction with iDeCo at 60! Not sure that’s the intended incentive.

Sadly you can’t do this.
Well, you can, but if you go the ‘company retirement payment (taishokukin) → ideco lump sum’ route, you have to wait 19 years in order to take full advantage of the retirement deduction again.

One alternative to reduce taxes is to get ideco as a mix of 1 time payment and the rest as pension, or… just wait 19 years (if you receive a company taishokukin by 55).
Have to do the math to know which one is best…

RetireJapan wrote: ↑Wed Dec 25, 2024 7:58 am

sutebayashi wrote: ↑Wed Dec 25, 2024 5:12 am It miffs me really because iDeCo is supposed to be tax advantaged, but one has to do the mental gymnastics of understanding how that actually works to maximize the benefit

This is actually a huge problem. If the government wants people to use these schemes, they have to be easy to understand, and this is the opposite of that.

There's been a lot of stuff on social media since this was announced complaining about iDeCo, with the result that a lot of people are going to be put off.

On the topic of admin for Ideco. One bit of info I fell upon recently.

会社員や公務員がiDeCoに加入する際や転職時には、これまで勤務先の人事部などが作成した「事業主の証明書」を提出する必要がありました。しかし、2024年12月からは「事業主の証明書」の提出が原則不要となり、iDeCoの申込みの手続きが簡素化されます。

Sauce:

https://www.resonabank.co.jp/nenkin/ide ... %2580%2582

This could potential speed the application process significantly..

Moneymatters wrote: ↑Thu Dec 26, 2024 12:41 am On the topic of admin for Ideco. One bit of info I fell upon recently.

会社員や公務員がiDeCoに加入する際や転職時には、これまで勤務先の人事部などが作成した「事業主の証明書」を提出する必要がありました。しかし、2024年12月からは「事業主の証明書」の提出が原則不要となり、iDeCoの申込みの手続きが簡素化されます。

Sauce:

https://www.resonabank.co.jp/nenkin/ide ... %2580%2582

This could potential speed the application process significantly..

Every little bit of red tape cut helps

I have my iDeCo through MONEX.
I am yet to receive anything from them about increasing my monthly contribution (from 12,000 yen to 20,000 yen in my case).
Has anyone else received anything yet?

Or, are we supposed to just go online and set up the new, increased amount?
If so, when?

Roger Van Zant wrote: ↑Thu Dec 26, 2024 5:29 am I have my iDeCo through MONEX.
I am yet to receive anything from them about increasing my monthly contribution (from 12,000 yen to 20,000 yen in my case).
Has anyone else received anything yet?

Or, are we supposed to just go online and set up the new, increased amount?
If so, when?

On Rakuten I am told there was an info pop up to let people know, then they could log in and change the monthly contribution amount online.

iDeCo investments are expressed as a % of the monthly contribution, so no need to change those settings.

Wales4rugbyWC23 wrote: ↑Wed Dec 25, 2024 12:22 am Trying also to get my spouse signed up for the UK pension and strongly encouraging my teenager children to get their National insurance numbers!!!!

Best of British with this! How's your experience of the NINO application process?

I have a monthly ideco payment of 68,000 yen as a freelancer payment my own kokuminnenkin. Use SBI shoken and want to apply for the new increased limit (75,000 yen). Can any SBI user help direct me through the App to the online application or the link to access forms needed to apply? Thanks!