iDeCo fund ＳＢＩ・全世界株式インデックス・ファンド

[RetireJapan]

I finally got round to changing my wife's iDeCo over to the Select version of SBI (she had a legacy account in the old, worse one). One of the funds looks very interesting. Similar to eMaxis Slim All-Country?

Any comments?

https://www.benefit401k.com/ja/customer ... 199387.pdf

[adamu]

This is compared on https://retirewiki.jp/wiki/Japanese_global_index_funds

It's a wrapper of 3 US ETFs, so comes with the triple taxation problem.

It's the same SBI fund discussed here, but they've simplified the name since then.
viewtopic.php?f=11&t=419

[RetireJapan]

Thanks! Is it actually triple taxed though if the dividends are reinvested internally (no Japanese tax)?

[adamu]

For iDeCo it would be doubly-taxed. These are withheld at source by the ETF so it doesn't matter what kind of account it's in.

From the link:

US withholding taxes are especially worth being aware of when using tax-advantaged accounts such as NISA and iDeCo, because while these are free of Japanese taxes, foreign withholding tax must still be paid. This means that for a US-domiciled fund or a Japanese-domiciled fund that is 100% reselling a US-domiciled fund, even tax-protected accounts will be paying two kinds of withholding tax on foreign non-US stocks (country of origin + US taxes).

This is info that I understand from J-blogs and posts on this forum. I've yet to see any mention of the tax handling in the prospecus itself and would happily be proven wrong! The full operating report might have more details but it's impenetrable to me.