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-   -   Pillar 3 contributions when wife stops working (https://www.englishforum.ch/finance-banking-taxation/291545-pillar-3-contributions-when-wife-stops-working.html)

poot 25.04.2019 21:02

Pillar 3 contributions when wife stops working
 
Hi all, my wife stopped working a cpl of years ago to have kids, but we each continued paying the max (c6,750chf/yr) into both pillar 3 accounts, especially since that's how the mortgage is amortized.

I just realized I'm not 100% sure whether the pillar 3 is only supposed to be for if you're employed, and the info I've researched is a bit vague. Anyone know anything about this?

thanks

DUTCH 25.04.2019 21:17

Re: Pillar 3 contributions when wife stops working
 
From CS website

QUOTE
For employed persons with a pension fund: CHF 6,826
For employed persons without a pension fund: 20% of net earned income, maximum CHF 34,128
UNQUOTE

Very likely you have been over contributing and locking the cash without any tax benefit. Check your tax assessments from previous years, my guess is tax office only accepted your contribution as tax deductible and not your wife's.

poot 25.04.2019 21:44

Re: Pillar 3 contributions when wife stops working
 
Thanks, itís this vague wording thatís rather unclear. My bank has accepted the payments which go into a fund, so maybe thatís fine and just not the tax benefit

st2lemans 25.04.2019 22:40

Re: Pillar 3 contributions when wife stops working
 
You can only deduct it from taxes if employed. ;)

You can always put money in, but why? :confused:

Tom

krozycki 18.09.2019 21:09

Re: Pillar 3 contributions when wife stops working
 
Hi all.

As it was quoted a few posts above:

"For employed persons with a pension fund: CHF 6,826"

My wife works part-time, does that mean she would be able to deduct from taxable income only a portion of that?

What does "with a pension fund" mean? Is that about whether she is contributing to the 2nd pillar?

Also:

"For employed persons without a pension fund: 20% of net earned income, maximum CHF 34,128"

Is that net earned income earned in the previous year?


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