RetireJapan

Roger Van Zant wrote: ↑Mon Feb 28, 2022 5:42 am Before I knew anything about this website, NISA, or iDeCo, I signed up for this through my company:

The company which runs the plan:
https://www.benefitdb.jp/img/common/ben ... 201901.pdf

Material I received from my company to get me to sign up:
https://ibb.co/c6m6JcK
https://ibb.co/mGSnr9M

It is utterly crap, only offering 0.5% in interest per year (with the fund managers/my company(?) pocketing the rest).
At the time, I figured 0.5% was better than the 0.001% my bank offers!

According to my company, the only way to get out of continuing to pay in is either by (a) leaving my company, or (b) hitting retirement age.
Is that really so? I pay in 10,000 yen per month, but could reduce to the minimum of 5000 per month next time the window comes around (twice a year).

I currently also pay into an iDeCo via Monex, but my monthly contribution is capped at a measly 12,000 yen all because I pay into the above crappy DB plan!
I really want to put this 10,000 yen into my iDeCo; I believe my monthly allowable iDeCo contribution would rise to 23,000 yen per month if I were not paying into the company DB.

Anyone have any insights?

Tkydon wrote: ↑Mon Feb 28, 2022 12:34 pm Consider it as the Bond portion of your portfolio, and invest the iDECO entirely in Equities.

The Good thing is that the DB will be taxed at a very advantageous rate if/when you receive the Payout as a Lump Sum.

Total Lump Sum
Minus Special Allowance for Years of Service (400,000 per year for first 20 years, and 700,000 for years over 20)
Divide by 2 for Taxable Amount

Apply standard Marginal Rates of Income Tax.

So the tax will be very low or zero...