After reading the sticky on the 3rd pillar (lots of info!), it is still not clear if someone who didn't have an income can still contribute to 3a account. Of course, there would be no tax deduction, but is it possible to put the money in anyway? Thanks.

why would one do that? better wait for next year to benefit from tax reduction (assuming you'll have income).
Unless it's an obligation from bank for the mortgage amortization.

The only restriction is that you don't put more than the maximum between 01-Jan and 31-Dec of each year and that you are still alive

Doesn't matter if you are working or not working. I have no source for this, just take my word for it!

maximum? as i understand it the 'maximum' applies only for obtaining the maximum tax rebate. the 3a accounts usually have a annual deposit limit equal to the 'maximum' but there is no reason why you cannot deposit more into a different account with the same or different provider. you just won't get the tax rebate but your savings will be compounded at about 2%

Not sure if you can deposit more than the maximum amount into different 3rd pillar accounts within the same year. I know you can have more than one, but I didn't think you can put the maximum amount into each one of those every year.

Maybe someone else can post the information.

Hi
For 2010 tax declaration you need an income of at least 32832 to deduct the full 6566 CHF. If there was no income, there is nothing to deduct. If income was 6000, maximum third pillar deduction is 1200, with 18000 income, its 3600.
Andy

1)You can put in as much as you want but you cannot deduct more than 20% of your income or more than 6682.- in 2011

2) You will get taxed at the moment you take the money out of the 3a account. The tax will be calculated as follow (See § 37 of Canton of Zurich Tax Law): Calculate the tax that you have to pay as income on 1/10 of the actual amount. See this table. But it has to be at least 2%. Multiply this number with 10. Thats the share that goes to the canton. Now multiply it with the Steuerfuss of your commune. That goes, logically, to the commune. If you are registered with one of the official churches then they will get there share too. This will sum up to a tax of approx 4 to 5% for small amounts (around 300'000.-).

Play with this calculator to see it in action

3) Is it worth to pay extra into the 3a account? One has to calculate the the maybe better capital gain of a 3a account (2,15% WIR-Bank) over other forms of investment (1% Postfinance e-dposit, 0.73% Swiss Bonds, stock market) versus the payout tax. Do this as a homework.

4) Is it worth to have multiple 3a accounts? Yes, because you do not have to cash in all your 3a money in the same year you will pay a significantly lower overall tax. Do as a homework, calculate tax for one account of 500'000.- and two accounts of 250'000.- each.

Thanks for the info aSwissInTheUS!

I didn't know that the maximum contribution was only for tax deductibility purposes. So it's good to know you can put more in there as the interest is not withholding tax and you don't pay wealth tax on the amount in the 3a account.

Very good to know the actual calculation too!

No you have to be either employed, self-employed or receiving unemployment benefits. If you are not working (student, homemaker, etc) you would not be allowed to pay in.

Have you ever actually tried to do that? The last time I accidently paid in the amount twice for the same year the second payment was refused by the bank.

Even if the bank would accept higher payment, you have no benefit with respect to withholding tax or wealth tax, since it will be treated as private savings (Säule 3b).

http://www.steuern.sg.ch/home/sachth...File/045_9.pdf

You might be try to circumvent this by paying in the full amount in accounts of different bank and just never submitting the confirmation slip of one of the banks to the tax authorities. However, it will get you at the latest when you try to cash in both of the accounts.

Thanks for the info Mica.

I can also confirm that I tried making more than the allowed amount and it was refused too.

It is not recommendable to save in the 3a more than you can actually deduct from the income taxes (6682.- for employees and 33408.- for self-employed) because there would be no additional benefit.

If you wish to save more for your retirement, you should consider a 3b pension plan. Even though you will not be able to deduct it from your income taxes, you will be entitled to privileged taxes when cashing out between 61 and 65.