RetireJapan

Hi,

At age 60 contributions into iDeCo accounts have to cease, and money can begin to be withdrawn. Do the tax reduction benefits continue beyond 60 or do they cease at that point too?

Thanks.

You can now contribute to iDeCo until 65 (provided you are paying into nenkin). You can choose to withdraw any time between 60 and 75. Once you withdraw lump sum or start receiving installments your account is closed so no more tax benefit.

Assuming you want to keep the account running, rather than start withdrawing.

There are four benefits to iDeCo

1. Contributions are free of income tax
2. Dividends are reinvested tax free
3. No capital gains tax
4. Tax deductions can be eventually applied to withdrawals (one for lump sum, one for regular payments)

As you can no-longer contribute, you can't benefit from #1 any more.

But the other benefits will still apply.

You can also still use NISA/Tsumitate NISA which also has benefits #2 (sort of - dividends are paid out, not reinvested, but they are still tax free) and #3.