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Old 27.11.2007, 08:39
Richard Richard is offline
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Re: 3rd Pillar Pension Fund

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Hi Richard,

thanks for the reminder.

I am wondering whether it makes sense for me to pay the 3rd pillar this year, when I know I am about to leave next year?

To which rate it will be taxed when/if I cash out next year? Normal income rate or something else?

Cheers,
Pekka
Well to be honest it depends how much you earn now. And to be further honest you probably won't benefit at all if you are leaving in a few months. If you are a BIG earner you might pay 30% in tax. so you would lose 2K from your 6365. If you pay it into a fund it is taxed at a marginal 40% rate which on 6365 would be close to zero!
But whether there are set up fees for the fund etc is really down to where you go. If you went to a kantonal bank and used it as a simple saving fund it would effectively be tax free income. If you went with an insurance company you might find you lose half in set up fees... Note you will also pay tax next year and can make an additional contribution for next year so you are not really talking about 6365 but at least double that...
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