Finally, the possibility to buy back into the 3rd pillar!
What was previously the golden rule of the 3rd pillar, namely, the impossibility of paying in more than CHF 6,883 for individuals affiliated with a pension fund, and CHF 34,416 for others, as well as being limited to contributing for the current year only, will very likely soon be a thing of the past.
Following a motion submitted by Obwalden MP Erich Ettlin in favour of retroactive contributions, both the National Council and the Council of States have approved an amendment to the law. This motion is expected to be implemented in 2023, but no precise date is known to date.
What will be possible ?
To manage this minor revolution in the pension system, legislators have established several clear rules. Firstly, the contributor must be at least 25 years old and have a regular income subject to OASI.
Second, retroactive payments into a 3rd pillar account will only be permitted once every five years, and the amount may not exceed CHF 34,416. The good news for savers is that these payments will still be tax-deductible.
It is important to remember, however, that these funds remain blocked until the holder’s retirement and can only be withdrawn early for the purchase of a primary residence.
Interested in this new development? Please do not hesitate to contact us. Our experts at Plus Assurance & SME will be happy to assist you in setting up your 3rd pillar.
