RetireJapan

Hi,
I have just used up the standard 5 year Nisa; have paid 1.2 M per year for 5 years.
Going forward I now can only use the Tsumate Nisa? I need to wait till next January to start this ?
I am using SBI
Thanks

concerned wrote: ↑Sat Jun 25, 2022 1:33 am Hi,
I have just used up the standard 5 year Nisa; have paid 1.2 M per year for 5 years.
Going forward I now can only use the Tsumate Nisa? I need to wait till next January to start this ?
I am using SBI
Thanks

No, this just means your 2017 NISA has hit maturity. You can still keep paying every year and every year that 1.2M invested is tax free for 5 years.

concerned wrote: ↑Sat Jun 25, 2022 1:33 am Hi,
I have just used up the standard 5 year Nisa; have paid 1.2 M per year for 5 years.
Going forward I now can only use the Tsumate Nisa? I need to wait till next January to start this ?
I am using SBI
Thanks

My understanding, which I suspect is about to be corrected, was each year you can “open” a NISA account for that year.
The “max” duration to hold a NISA account is 5 for normal or 20 for tsumitate.

So next year your first NISA year is expired. To keep it alive beyond the “max” duration you can roll it over but that consumes next year’s NISA account.
Or you cash out and open either a new NISA or new Tsumitate account.

Let the reducationing commence!

Moneymatters wrote: ↑Sat Jun 25, 2022 4:10 am

concerned wrote: ↑Sat Jun 25, 2022 1:33 am Hi,
I have just used up the standard 5 year Nisa; have paid 1.2 M per year for 5 years.
Going forward I now can only use the Tsumate Nisa? I need to wait till next January to start this ?
I am using SBI
Thanks

My understanding, which I suspect is about to be corrected, was each year you can “open” a NISA account for that year.
The “max” duration to hold a NISA account is 5 for normal or 20 for tsumitate.

So next year your first NISA year is expired. To keep it alive beyond the “max” duration you can roll it over but that consumes next year’s NISA account.
Or you cash out and open either a new NISA or new Tsumitate account.

Let the reducationing commence!

The rollover stuff makes it complicated but what you've said is correct. The yearly account thing is really tripping people up (it tripped me up too). Maybe RJ could write an article about this or we could have a separate item on the wiki about it.

concerned wrote: ↑Sat Jun 25, 2022 1:33 am Hi,
I have just used up the standard 5 year Nisa; have paid 1.2 M per year for 5 years.
Going forward I now can only use the Tsumate Nisa? I need to wait till next January to start this ?
I am using SBI
Thanks

I am in the same position and I assumed it was a calendar year thing. I used up this year's allocation in January and just assumed I have to wait to rollover for the new year (if that is possible), or move to taxable before January and then start a new tsumitate. And then do the same again next year for that expiring NISA etc. Have I misunderstood?

Rollover only happens when the account expires (5 years or 20 years). Next year, you get a fresh allowance that's tax free for another 5/20 years.

zeroshiki wrote: ↑Sat Jun 25, 2022 1:51 pm Rollover only happens when the account expires (5 years or 20 years). Next year, you get a fresh allowance that's tax free for another 5/20 years.

This is not correct. We don't know whether tsumitate NISA will be allowed to roll over in the future (hasn't been mentioned yet, may be announced later).

When ordinary NISA expires, you have the option of moving some, all, or none of the content into a new ordinary NISA account.

From 2024, you will have the option of rolling over eligible investments (some funds are excluded) from ordinary NISA into a new NISA.

When the new NISA years expire it will be possible to roll over mutual funds into tsumitate NISA.

There is no 'account'. Only a bunch of NISA years.

We don't actually know if they will allow rolling over for New NISA into Tsumitate NISA. Its only been speculation.

RetireJapan wrote: ↑Sat Jun 25, 2022 2:20 pm
From 2024, you will have the option of rolling over eligible investments (some funds are excluded) from ordinary NISA into a new NISA.

Do you have any more details on what investments / funds are excluded? I perhaps, naively thought that you could roll-over any kind of investment (funds / stocks) from the old NISA into the new NISA. (I know for example that stocks aren't allowed in the new NISA - but thought that was only for totally new investments but roll=overs were allowed).

zeroshiki wrote: ↑Sat Jun 25, 2022 3:05 pm We don't actually know if they will allow rolling over for New NISA into Tsumitate NISA. Its only been speculation.

Au contraire

(this is from the FSA website: https://www.fsa.go.jp/policy/nisa2/abou ... index.html)