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Old 06.08.2015, 10:15
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Leaving Switzerland 2nd pillar question

We're leaving Switzerland in the fall. I've recently stopped working. My husband will work for a few more months.

I'm a US Citizen so I know I have to cash out my 2nd and 3rd pillars, and need to close my accounts within 2 months of officially leaving Switzerland.

We'll leave Switzerland officially in November, and I'm thinking of postponing the 2nd and 3rd pillar cashing out activities to 2016. Since my understanding is that I'll need to declare this on my US Tax declaration and pay US taxes on it.

Any tips on this? Specific questions are:
-is it worth waiting to cash out the 2nd and 3rd pillar accounts?
-is there any advantage to waiting to transfer the 2nd pillar to the "free transfer" bank account? It seems that in my case it could just stay with Zurich insurance for a few extra months easily.

Thanks for any advice!
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Old 06.08.2015, 10:41
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Re: Leaving Switzerland 2nd pillar question

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We're leaving Switzerland in the fall. I've recently stopped working. My husband will work for a few more months.

I'm a US Citizen so I know I have to cash out my 2nd and 3rd pillars, and need to close my accounts within 2 months of officially leaving Switzerland.

We'll leave Switzerland officially in November, and I'm thinking of postponing the 2nd and 3rd pillar cashing out activities to 2016. Since my understanding is that I'll need to declare this on my US Tax declaration and pay US taxes on it.

Any tips on this? Specific questions are:
-is it worth waiting to cash out the 2nd and 3rd pillar accounts?
-is there any advantage to waiting to transfer the 2nd pillar to the "free transfer" bank account? It seems that in my case it could just stay with Zurich insurance for a few extra months easily.

Thanks for any advice!
You should have already declared your Swiss pension as it's not deductible for US taxes.

They will only cash out your second pillar when they have the info they need to do so, they only know you deregistered from Switzerland if you tell them.

I doubt if you have left employment you can leave the pension for 2 months.
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Old 06.08.2015, 11:15
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Re: Leaving Switzerland 2nd pillar question

To possibly reduce your US taxes on the Pillar II and III accounts, consider spreading the withdrawals over two years:
1) Withdraw your Pillar III this year.
2) Transfer your Pillar II to the Auffangeinrichtung BVG this year and then withdraw it next year.
- The Auffangeinrichtung (literally, "collection device") is a government-affiliated institution that is required to take all Pillar II funds, including abandoned Pillar II pensions.
http://www.chaeis.net/en/stiftung-au...htung-bvg.html
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Old 06.08.2015, 11:23
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Re: Leaving Switzerland 2nd pillar question

Pillar 2 will normally automatically get transferred to a "Freizügigkeitskonto" on termination of employment unless it is possible to arrange something else with your pension fund. There are considerations about opening the free access account in Kanton Schwyz rather than in Zürich to lower the Swiss tax liability, but I am not sure how your US tax liability affects what the Swiss take on getting the pension fund paid out
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