RetireJapan

Today I was sitting in a Cafe reading the new NISA guide.
(Thanks to Ben by the way! It is a great guide! I just paid into my NISA at the beginning of each year, but did not think otherwise, so it is good to refresh!)

Reading the roll-over sections, I had a bit of a question:

With the regular NISA, is it possible to roll over the whole current amount, or only the amount up to the limit (1.2M/1.02M)?
I found two sentences saying different things, which I did not understand well:

57. What happens after 5 years/20 years?
... If the assets are worth more than the limit for that year, you can roll-over some of them, but anything over the limit will be moved into your taxable accounts. ...

58. Rolling over
... If they are worth more than 1.2 million yen that is okay, they can still all be moved over. So if your expiring NISA investments were worth 1.5m yen, they would be moved into the new NISA year at that valuation. ...

Curious follow up question: If roll-over of everything is allowed, what is the point of the 5/20 year limit?

I started my NISA journey 2020, so I still have time until the end of 2024. I hope to understand it until then

donut wrote: ↑Thu Sep 01, 2022 1:34 pm With the regular NISA, is it possible to roll over the whole current amount

Whole amount for that year even if it's over the limit, yes.

There are some details on the process here https://retirewiki.jp/wiki/NISA.

donut wrote: ↑Thu Sep 01, 2022 1:34 pm Curious follow up question: If roll-over of everything is allowed, what is the point of the 5/20 year limit?

There is no roll-over for Tsumitate, only for NISA.

The purpose of the 5 year limit is to keep you at an initial investment amount of 6M yen (1.2M * 5 years). You can roll over, but it's that initial 6M that compounds. If there was no 5 year limit, you could invest a new 1.2M yen every year, with no 6M limit.

donut wrote: ↑Thu Sep 01, 2022 1:34 pm I started my NISA journey 2020, so I still have time until the end of 2024. I hope to understand it until then

Luckily for you, New NISA starts in 2024 to add more confusion to the system.

Whole amount for that year even if it's over the limit, yes.
There are some details on the process here https://retirewiki.jp/wiki/NISA.

Thanks for the answer and link. So it is possible to keep even the grown part tax free for some more time.

The purpose of the 5 year limit is to keep you at an initial investment amount of 6M yen (1.2M * 5 years). You can roll over, but it's that initial 6M that compounds. If there was no 5 year limit, you could invest a new 1.2M yen every year, with no 6M limit.

Now I get it! That makes sense.

I started my NISA journey 2020, so I still have time until the end of 2024. I hope to understand it until the

Haha. I also saw the other thread, talking about even more upcoming changes.

donut wrote: ↑Thu Sep 01, 2022 1:34 pm 57. What happens after 5 years/20 years?
... If the assets are worth more than the limit for that year, you can roll-over some of them, but anything over the limit will be moved into your taxable accounts. ...

Argh, that is a pretty serious typo. Thanks for finding it