That is exactly how it is calculated and then the marigal tax rate recalculated and the difference given back.

Hello,

I currently have a 3a account and I was advised to open a second one to split the withdrawal when 60-65+. I was told that way I could withdraw the 2 accounts on different years and then pay less tax that way.

Is it really a good idea, do you get some drawback not having all your found in the same account ?

I am currently in UBS (2%) and consider opening the new one in Post-Finance (2.25%). If it is only allowed to have the money in one account, can I move to Post-Finance ? How long would that take (immediate or pre-anoncement needed) ?

Thanks in advance.

Definitely advantageous to have more than one 3a account. I have 3 of these. Would save taxes at redemption. Also spreads the risk if the bank suffers insolvency. Go for it!

Note: you cannot split an existing 3a account. You can only open a new account at another Bank.

Transfer of 3a assets from one Bank to another should be a quick and painless transaction.

For a comparison of 3a interest rates, see
http://www.comparis.ch/banken/vorsor...eich-zins.aspx

Best rate is 3%.
Raiffeisen offers 2.5%

Hi,

I have a question on tax treatment towards the pillar 3a contribution. Can contribution towards an unemployed's pillar 3a still be deductible against taxable income (joint assessment) ? i.e. have two pillar 3a accounts, one for my husband and one for me. I stopped working this year but if we still contribute to my pillar 3a account, is the amount deductible?

Thank you,
CMB

Interesting question.. I think the answer is NO, as the 3A account is individual, you can deduct taxes for your earnings only.

You can contribute 3a for the year in which you had taxable income. Of course, the deduction cannot exceed the income! Subsequently, you can contribute 3a, if you are receiving Swiss unemployment benefits.

For an authoritative answer on deductibility, phone your local tax officer. In ZH the Cantonal tax office is also accessible via eMail and reply promptly.

I would have thought yes... in Switzerland you are taxed as a couple, not individuals. For not self employed the 3rd pillar allocation is per person per year based on a fix amount.

Daniel

The ratgeber (advice booklet) on Pillar 3a says this pillar is not available to housewives (or housemen). I take that to mean Goldtop is right, in other words if you have no income at all in a year, you cannot contribute. You are also asked if you open an account whether you are employed and contribute to a pensionskasse. So regardless of whether one is part of a couple, I think with pillar 3a only the individual situation counts.

Interesting though that you can contribute if on unemployment benefits. I guess those are taxed and you pay AHV so it makes some sense...

Contribution rules are:

1. If you do not have a pension plan, then you can contribute 20% of income. Maximum deduction is approx 30k.
2. If you do have a pension plan, then maximum is approx 6k.

Criterion 1 enables a larger contribution for high-income taxpayers. Criterion 2 is better for us low-income "salalyma"! Of course, deduction cannot exceed income.

Hi there,
Have written to the tax authority and got the answer back. Pillar 3a deduction is an individual thing - i.e. not entitle for it if you are houswife/ houseman even though on overall basis you are taxable (on spouse income etc.)

If you stopped working this year and have earned more than 6365 francs before tax you can pay in the full amount to your 3a account for 2008. Otherwise up to how much you earned. Otherwise quite right no income, no 3a simple as that.

Does it mean that if one, as a spouse, has earned 6365 francs in an year and has contributed all to 3A, he/she has no tax liability. I think it's on pro-rated basis.

So what happens if you have an endowment type policy... you still pay but its not tax deductible?

Daniel

That is why 3a-insurance policies are not a good idea.

Has anyone got any experience with this Brienz Oberhasli bank? Just want to know if there are any snags with this 3% account (apart from where they located). I found their FAQ which says there are no costs associated with opening or having the account, but they do not specify costs upon closing or withdrawing. In the rules leaflet it says there are costs but you will only be told once you have opened the account!

I opened a 3a account with BO in January 2008. I signed forms instructing Migros Bank to transfer the existing 3a to BO. Weeks went by without transfer. BO said they had sent the instruction to MB. MB said they never got it! Unclear whether BO are inefficient or whether MB were avoiding/delaying the transfer. I had to go to MB offices and sort it out.

Thanks Goldtop! Meanwhile, I found out one important thing in the rules from this bank. If you leave and want to withdraw your money, you need a copy of your passport, but also an official document stating you are not married (or have your spouse's signature officially verified!), and an official document stating where you live. My gemeinde states that the status of being married/or not needs to come from your heimatsort (place of origin?) not where you live. If this means I need to get a copy from my country, this whole process is way to complicated. (Also, if these forms/copies all need to be official, it will cost at least 3 times 20 CHF or more).

However, if you are leaving, but are clever, and transfer your funds to a kanton with low taxes on pillar 3a just before you leave, this bank only needs your signature and a confirmation of your new pillar 3a. What I do not know is if other funds also require the confirmation of not being married form...

I emailed this bank, and they replied. There are no costs associated with neither closing or transferring the account. They basically say, at least not at the moment, and probably won't be until others start doing the sme.

All banks and financial institutions require spouse's consent to liquidate Pillar 2 (Pension plan or Freizüigkeit) or Pillar 3 assets. That is Swiss law. Also taxes must be paid.

No formalities for transferring from one bank to another. No taxes and no charges either.

Hi

I am wondering how often the rates for a given bank change?

I am hesitating between opening an account:
By Postfinance (2.75%)
By Brienz Oberhasli (3%)

I suppose Postfinance would be more efficient (I think they are also have an unlimited state guarantee in case they go bankrupt) but Brienz Oberhasli offer a higher percentage.

Is the extra 0.25% worth it? Could the Postfinance interests possibly rise above those of Brienz Oberhasli in the near future (or not go down as much)?