RetireJapan

Earlier this year I finished my job at a university. There, I had been paying into iDeCo as a kyosai member (12,000 yen a month), and my employer deducted my contribution directly from my salary.

A couple of weeks after leaving I got my severance paperwork from employer so was able to sign up for kokumin nenkin, and then contact Rakuten Securities to change my iDeCo settings.

I needed to change: type of pension paid (type 2 to type 1) and payment method (deduction from salary to deduction from bank account).

There were some issues with the forms so Rakuten sent them back covered in their signature post it notes

Just checked my account, and it seems the July deduction went through on the 15th.

I lost three months of contributions to the process, but at least I'll get the other nine months (3x12,000 yen and 6x67,000 yen). Looking forward to supercharging my iDeCo account over the next twenty years

I've learned my lesson and will keep it as bank withdrawal in the future, just to be safe.

Thanks for sharing that. I am going through something similar because my position at my employer changed in a way which increased my contribution limit and will allow my contribution to go through my employer in the future instead of being drawn from my Rakuten account. For the first month both amounts seem to have been withdrawn and my employer told me to wait until all the paperwork goes through. I have no idea how they will handle the overlapping payments but will let you know when I find out (probably in 3+ months )

RetireJapan wrote: ↑Wed Jul 27, 2022 4:56 am I've learned my lesson and will keep it as bank withdrawal in the future, just to be safe.

Yes, this is what I do.

But I'm hesitant to recommend that for others, especially Class 2s, because then you have to claim it on your Nenmatsu Chousei / Tax Return every year, which is a bit prone to error.

adamu wrote: ↑Wed Jul 27, 2022 5:35 am

RetireJapan wrote: ↑Wed Jul 27, 2022 4:56 am I've learned my lesson and will keep it as bank withdrawal in the future, just to be safe.

Yes, this is what I do.

But I'm hesitant to recommend that for others, especially Class 2s, because then you have to claim it on your Nenmatsu Chousei / Tax Return every year, which is a bit prone to error.

Yeah, I used to recommend employer deduction if people can get it, but now I would amend that to only if you plan to stay with that employer. If you are likely to move it might be better to do the bank account.