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iDeCo pre-tax investing

Posted: Fri Oct 29, 2021 4:59 am
by Esiotrot
How does pre-tax investing work?
My company wouldn't allow me to set up my iDeco payments to come out from my salary, will this mean I cannon invest pretax?

Re: iDeCo pre-tax investing

Posted: Fri Oct 29, 2021 7:28 am
by EmaxisSlim Cultist
Esiotrot wrote: Fri Oct 29, 2021 4:59 am How does pre-tax investing work?
My company wouldn't allow me to set up my iDeco payments to come out from my salary, will this mean I cannon invest pretax?
No. You can set up the iDeco yourself, and present your employer with the information just as any other deduction.

They should have allowed you to do this, and the documents they will have to fill out to allow you to contribute yourself even require them to state that you asked, and they refused. :lol:

Push ahead with it.

Re: iDeCo pre-tax investing

Posted: Fri Oct 29, 2021 3:51 pm
by adamu
Esiotrot wrote: Fri Oct 29, 2021 4:59 am My company wouldn't allow me to set up my iDeco payments to come out from my salary, will this mean I cannon invest pretax?
You pay it post tax, and then you claim it back in your end of year adjustment / tax return. More details, including how to do Nenmatsu Chousei, if that applies to you, here: https://retirewiki.jp/wiki/IDeCo.
EmaxisSlim Cultist wrote: Fri Oct 29, 2021 7:28 am the documents they will have to fill out to allow you to contribute yourself even require them to state that you asked, and they refused.
I once checked the "company pays" box, and they sent it back to me with that crossed out and "individual pays" checked. I had to order another form and get them to do it again, this time admitting that they wouldn't cooperate.

However, now I prefer the individual route. You have to claim the tax back, but it's less paperwork when moving jobs and you don't have to worry about payments stopping during the process.