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| Payment into the pension plan is generally tax deductible.
BUT:
if you dissolve the pension plan too soon
(because of retirement, immigration, etc.);
then the taxman may interpret the extraordinary contribution as tax avoidance  and reverse the deduction  .
Tax avoidance is despicable whereas providing for retirement is encouraged.
Now arises the question: When is it "too soon"? The taxman decides that. More than 5 years is OK. Less than 1 year is vulnerable. | |
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Voluntary buy backs has to remain at least exactly 3 years in the circuit of the second pillar in order that the tax authorities accept it.