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Old 28.04.2015, 10:53
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Transfer 2nd pillar cash to new build/purchase

When we bought our appartemnt, we cashed in some of our 2nd pillar pension as part of the deposit. Now we're looking to sell up and build a house. Our mortgage lender, PF, said we were obliged to pay this back on selling our appartment (and I've confirmed this in official documentation). However, in meetings with mortgage consultants at other banks, we were told it would be possible to transfer this money to the new property.
Can anyone confirm this is correct and point me towards some official site stating so?
I'm sure they're correct and it would be completely within the rules, but the girl at PF was pretty insistent.
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Old 28.04.2015, 11:30
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Re: Transfer 2nd pillar cash to new build/purchase

From my quick reading of the rules (Ger) http://www.bsv.admin.ch/themen/vorso...x.html?lang=de, it looks like if you sell a property, which has been partly financed by an withdrawal from your pension fund, that portion of the sale proceeds which you withdrew has to be paid into a blocked account 'Freizugikeitskonto' and used within 2 years for the purchase of another property. Failing that, it must be repaid into the pension fund.
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Old 28.04.2015, 12:07
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Re: Transfer 2nd pillar cash to new build/purchase

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From my quick reading of the rules (Ger) http://www.bsv.admin.ch/themen/vorso...x.html?lang=de, it looks like if you sell a property, which has been partly financed by an withdrawal from your pension fund, that portion of the sale proceeds which you withdrew has to be paid into a blocked account 'Freizugikeitskonto' and used within 2 years for the purchase of another property. Failing that, it must be repaid into the pension fund.
So this bit then:
"Will die versicherte Person jedoch den aus einer Veräusserung des Wohneigentums erzielten Erlös im Umfang des Vorbezugs innerhalb von zwei Jahren wiederum für ihr Wohneigentum einsetzen, so kann sie diesen Betrag auf eine Freizügigkeitseinrichtung überweisen, und sie ist nicht zur Rückzahlung verpflichtet, wenn der Erlös aus der Veräusserung innerhalb dieser Zweijahresfrist effektiv in ein neues Wohneigentum reinvestiert wird"

So the other banks were correct.

Good to know, thanks for finding it.
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Old 29.04.2015, 16:22
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Re: Transfer 2nd pillar cash to new build/purchase

Another quick question. Say, for argument's sake, we don't require all of the existing withdrawal from the pension fund for the new property, can we repay a part of it? For example, pay back the portion which came from my wife's pension?
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Old 29.04.2015, 16:28
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Re: Transfer 2nd pillar cash to new build/purchase

Yes - in fact you're supposed to repay the money, and there are rules that mean any voluntary pension payments must go to paying down the EHO withdrawal before any other voluntary "pots" (sorry not sure what the right word is!).
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Old 29.04.2015, 16:34
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Re: Transfer 2nd pillar cash to new build/purchase

I would ask the pension - what would be the best way "for you" to do this.
I also dont think that you pay anything to transfer in and out. So I dont think that you will have a problem. But I would also pay back as much as I could.
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Old 29.04.2015, 17:26
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Re: Transfer 2nd pillar cash to new build/purchase

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I would ask the pension - what would be the best way "for you" to do this.
I also dont think that you pay anything to transfer in and out. So I dont think that you will have a problem. But I would also pay back as much as I could.
If you transfer out, as in the case of an early withdrawal to fund a property purchase, the amount you transfer out is subject to a separate tax assessment (usually lower that the income tax rate). I'm not sure how it works when/if you return such a withdrawal. It could be that that tax is refunded. Yes, it is best to discuss it with the Pension provider.
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Old 18.05.2015, 20:23
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Re: Transfer 2nd pillar cash to new build/purchase

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If you transfer out, as in the case of an early withdrawal to fund a property purchase, the amount you transfer out is subject to a separate tax assessment (usually lower that the income tax rate). I'm not sure how it works when/if you return such a withdrawal. It could be that that tax is refunded. Yes, it is best to discuss it with the Pension provider.
The info given here is pretty accurate.

However, if you payback the money you took from a 2nd pillar you can get a tax refund if it's done within the 3 years after withdrawal. And of course, YOU have to ask them back it's not done automatically!
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