RetireJapan

At least with Rakuten, Junior NISA accounts also come with regular investment accounts. I'm not sure, but it seems you can withdraw money from the regular accounts (you cannot withdraw from the Junior NISA until the child is 18). Everything seems to work online.

TokyoWart wrote: ↑Tue Jul 16, 2019 7:43 am Also keep in mind that the gift tax limit in Japan is 1.1 million yen/year so you would not want to add more than that to their account in any one year without being able to show that the money did not all come from you.

Thank you for your reply.

One note about gift tax. I found that it is 1.1 total per-child. It does not matter who it comes from. For example, if the child receives over 1.1, 500 from parents, 800 from grandparents, totaling 1.3, the 0.2 over would be taxable.

However, I found you don’t have to pay the gift tax if the money is contributed to an education trust account, 教育資金, which enables contributions up to 1500万 tax free. But, to use the money it has to be for education and you are required to submit receipts. Caveats being, these accounts are only available until 2021 and I don’t believe you can invest the funds deposited in such an account, so the money sits there.

Currently thinking of doing,
1) Gakushihoken of 200万 (technically an insurance policy so not part of the gift tax and can be deducted from tax); tax deducatbility and life insurance peace of mind make this a contender for the low-risk part of my child’s investment portfolio perhaps...
2) Junior NISA (80万 yearly) with Rakuten with reg investment account (leftover 30万)
3) open education trust if need be/close to moving past gift tax amount

In all likelihood, I won’t ever near the gift tax cap, but I wanted to understand how things work and what my options are.

Thanks all for your comments.

I am still not clear.

The JSDA website states that:

In those accounts [referring to Junior NISA accounts] income derived from the assets remains tax-exempt until the account holder becomes 20 years old.

So this understanding correct?

Year 1 -5 Total deposit 4,000,000 yen
Total interest 1,000,000
Assets as of 5th year 5,000,000 yen

We don't touch the account, don't make any deposits etc after 5th year. When kid is 20 years old, account is already worth 20 million.

By the sentence quoted above, this would all be tax free?

Hmmmm...
I was under the impression that the 5yr Jr NISA period would just get rolled over... If the amount rolled over was greater than ¥80man you'd lose a year's worth of contributions, but could then add to it for the next 4yrs... No?

From Ben's blog post on NISA and Jr NISA he says with regards to his daughter's Jr NISA:

We’ll continue contributing to this until she’s 20

Well you can't do that if you can only contribute for 5max, then you just have to leave the investment for another 13years...

Bushiman wrote: ↑Wed Aug 21, 2019 7:15 am Hmmmm...
I was under the impression that the 5yr Jr NISA period would just get rolled over... If the amount rolled over was greater than ¥80man you'd lose a year's worth of contributions, but could then add to it for the next 4yrs... No?

From Ben's blog post on NISA and Jr NISA he says with regards to his daughter's Jr NISA:

We’ll continue contributing to this until she’s 20

Well you can't do that if you can only contribute for 5max, then you just have to leave the investment for another 13years...

The Junior NISA (like all the NISA accounts) is kind of over-complicated. I'm not sure I completely understand how it works!

I believe each year's contributions are tax-free for five years, then they become taxable. We are just planning to add money to the account each year and ignore previous years. However, if there is a roll-over option and it works like regular NISA does (you can roll over the full amount, even if it is over the limit) that might work better...

Thanks for the info Ben.
I guess we'll just carry on with contributions and see what happens once the 5yrs is up for some of you guys who opened junior NISAs before us...

Hi everyone i am new to this forum but i just want to know if where should i go to open a ideco and nisa account?i still dont understand step by step of it.
do i need to go to the bank or anything?
do i need to open a new account?SBI or like rakuten?or a japan post account will do?
i am planning to open a ideco for me and my husband and a nisa for my 3kids age 13,9,and 5.what is your opinion about it?i would love to hear opinions from others who already have this and had more knowledge and experience. I have read a lot about it but i just though it would be more clear if i personally know the step by step.thank you in advanced and ganbarou with us.

maamaapols wrote: ↑Sun Oct 03, 2021 11:30 am Hi everyone i am new to this forum but i just want to know if where should i go to open a ideco and nisa account?i still dont understand step by step of it.
do i need to go to the bank or anything?
do i need to open a new account?SBI or like rakuten?or a japan post account will do?
i am planning to open a ideco for me and my husband and a nisa for my 3kids age 13,9,and 5.what is your opinion about it?i would love to hear opinions from others who already have this and had more knowledge and experience. I have read a lot about it but i just though it would be more clear if i personally know the step by step.thank you in advanced and ganbarou with us.

First off, are you American? The advice changes depending on the answer to that.

If you're not, the standard recommendation is to get securities accounts with the big three low cost brokers. Rakuten/SBI/Monex. The choice is up to you. Banks also offer NISA and that might be easier because of the simplicity but its always better to go with the low cost ones because of fund choices and fees.

You will need to open 5 accounts so it will take a while. Just be patient. Start with your and your husband's first then do the junior NISA for your kids.