Thread: 3rd pillar - Any reason to wait till December?
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Old 31.10.2009, 20:48
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Re: 3rd pillar - Any reason to wait till December?
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jttraveller
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Hello everyone,

I read through the 3rd pillar posts with great interest and it seems to me that one has to pay the 6000 CHF something latest by December in order to be deducted from tax for the next March. My question is, is there any reason to wait till December only to deposit in the money? Well, I mean of course if we can afford to and instead of letting the money earning tiny interest in normal saving account, isn't it better to deposit it earlierst possible into the 3a account? Or maybe there are more offers coming out only in December?

Some side questions if anyone doesn't mind to share the knowledge:

1. How is the potential refund calculated if one pays tax at source? According to the tax chart, the amount taxed is always according to brutto income per month. If we, let' say pay 6k CHF into the 3a account, does it mean a general reduction of 500 CHF taxable income per month (hence looking at the chart for values brutto income minus 500 CHF?)

2. I read about the need to check the location of the bank to determine tax to be paid for future withdrawal if leave CH. Can anyone enlighten me about the name of the tax and where we can see it? I mean is it certain that the tax would be confirmed lower than the tax we save now? And I heard there is a difference whether one withdraw before leaving or after settling down at new country??

3. I got the choice between BPS (Suisse) Life Benefit and Postfinance. The BPS offers the highest rate but apparently it is not as well known as Postfinance. Any concern about that? Maybe it's better for choosing a bank where we can physically there when needed?

Thanks for the info.
I pay my 3a contribution in January. Thus benefit from the higher interest rate, which is also tax free.

Swiss deposit insurance of CHF 100k also covers relatively unknown BPS, too.

Withdrawal taxes on emigration, depend where the provident trust is located. This may not be obvious. For example, ZKB and all other cantonal banks administer the 3a through Swisscanto, which is located in Basel.
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