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Old 28.11.2010, 14:29
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2nd Pillar- Seeking clarification

Hi
I am in Zurich for the last 1.5 years and employed with a local company.
I am planning to purchase extra pillar 2a this year.
My current plans is to move out of switzerland by April 2014.
I have the following clarifications.
- If i am moving to a country like UK or US , can i transfer the pillar 2a money.
- If i am moving to a country where there is no pension provision ,
-can i retain the pension fund in Switzerland itself and withdraw it later.
- If I am withdrawing it when i move out, will i be taxed similarly to what i
would have been taxed now.If not what would be the tax rate at which i will be charged.

thanks in advance for your clarification.
Rgs
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Old 28.11.2010, 14:45
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Re: 2nd Pillar- Seeking clarification

- If i am moving to a country like UK or US , can i transfer the pillar 2a money.
=> if moving to US, no problem AFAIK. If UK, then only the non-mandatory element may be transferred out of switzerland.

- If i am moving to a country where there is no pension provision ,
-can i retain the pension fund in Switzerland itself and withdraw it later.
=> don't know, but I think so

- If I am withdrawing it when i move out, will i be taxed similarly to what i
would have been taxed now.If not what would be the tax rate at which i will be charged.
=> if you mean, will you pay the same tax that you would be getting as tax relief when you pay in, then no, it's typically much lower. However....please be aware that the swiss government recently clarified the law relating to additional purchases (although all details are not known to me). If you make a purchase, the tax benefits you get will effectively block the pension from withdrawal for 3 years, or at least if you are able to withdraw, you would negate the tax benefits you received. That does not apply just to withdrawing the money you pay in this year, but all money that is in the pension. As I say I don't have all details of this, but my understanding is that if you need to withdraw any money for house purchase whilst in switzerland, or any money after leaving switzerland, you need to leave a 3 year window since your last additional purchase, or there are problems.
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Old 28.11.2010, 14:45
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Re: 2nd Pillar- Seeking clarification

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Hi
I am in Zurich for the last 1.5 years and employed with a local company.
I am planning to purchase extra pillar 2a this year.
My current plans is to move out of switzerland by April 2014.
I have the following clarifications.
- If i am moving to a country like UK or US , can i transfer the pillar 2a money.
- If i am moving to a country where there is no pension provision ,
-can i retain the pension fund in Switzerland itself and withdraw it later.
- If I am withdrawing it when i move out, will i be taxed similarly to what i
would have been taxed now.If not what would be the tax rate at which i will be charged.

thanks in advance for your clarification.
Rgs
If you have more than 5 years before being eligible to collect your pension and are moving to a EU country then you can not take the money with you, Your pension can be placed in a blocked account.

In other Cases if a country has a provision for a pension system then your assets can be transfered. If you are going to a non EU country that has no such provision then you should be able to take the amount in cash which will be taxable.
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