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Old 04.10.2019, 17:53
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Pillar 3a limits

UBS site says the limits are:

For beneficiaries with a pension fund: 6826 Swiss francs
Without a pension fund: 34 128 Swiss francs (max. 20% of net income)
(The german says the same, using the word Pensionskasse).

Does pension fund here mean Pillar 2? Or does Pillar 1 count? My wife is employed, and takes home CHF20K or so each year, part time, but has no Pillar 2.

Is the maximum for her 6826 CHF, or 4000 CHF?

And what happens if you put too much in?
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Old 04.10.2019, 18:03
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Re: Pillar 3a limits

Pension fund == Pillar 2.

If the wife has no pillar 2 then the max 34 128 Swiss francs, max. 20% of net income rule applies.

If you put in too much into pillar 3a:
The tax authority will cap the deduction to the allowed max.
and give you a piece of paper which sates you overpaid and allows to redraw the overpaid amount from the pillar 3a. This might be easy in case of a bank account pillar 3a, but could be difficult in case of a fund or insurance product.
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Old 04.10.2019, 18:21
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Re: Pillar 3a limits

Thanks. That's what I thought. Our bank advisor assumed she'd got a Pillar 2!
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Old 04.10.2019, 18:52
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Re: Pillar 3a limits

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My wife is employed, and takes home CHF20K or so each year, part time, but has no Pillar 2.
Donít you have to earn some sort of minimum salary before you can write off pension contributions from your income taxes?
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Old 04.10.2019, 20:46
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Re: Pillar 3a limits

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Donít you have to earn some sort of minimum salary before you can write off pension contributions from your income taxes?
Pension contributions are not taxable,
Pillar 3a contributions are not pension contributions.
Pensions contributions are only mandatory above a minimum salary of CHF 21'330.
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Old 04.10.2019, 23:00
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Re: Pillar 3a limits

Ok, letís say, Iím employed, and my wife is not. Can we both contribute to individual 3a accounts and deduct Fr.6826 x 2 from our income for the tax calculations?
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Old 04.10.2019, 23:19
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Re: Pillar 3a limits

Actually found the answer to my question on the other thread. You have to earn something to be able to make deductions via the 3a. There is no minimum salary, but a married couple canít deduct twice if one party is not earning. It is based in an individualís earnings.


https://www.englishforum.ch/finance-...sion-fund.html
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