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| I checked with my pension fund. They said I would need to cash out my 3rd pillar. Pay the tax (I don't know how much that would be) and then I could fund the 2nd pension with the funds. | |
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You can do that. But it is disadvantageous.
Pillar 3a assets are exempt from income and wealth taxes. So what is the benefit of moving from 3a to Pillar 2?
Note that a P-2 deficit can be filled any time. But P-3a contributions are capped annually.
Moreover, you have more flexibility in P-3a and deposit it in the Bank paying the highest interest. But P-2 you are trapped in the employer's fund, cannot arbitrarily withdraw, cannot choose a better institution, etc.