Retroactive contribution into 3a

Finance, Taxes, Banking, Insurance and Retirement
1

Hi all,

I got an email from a financial institution in CH saying that retroactive contributions can be made into 3a accounts for the last 10 years. For example, to catch up for 2025, full 2026 contributions have to be made first, then 2025 in full, then 2024 full… up to going back 10 years.

If anyone has more info on this, I’d love to hear it.

TIA!

2

It’s a new rule, but 2025 is as far back as you can go as that is when the new rule was put in place.

The 10 years means you can do this as far ahead as 2035 for 2025 assuming conditions are met.

I plan to make use of this rule as I will kit be paying into 3a this year, but I may do next year for 2025 and 2026.

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3

@phil_mcr :folded_hands:

So the pension funds are looking for money now, while promising in the future. Oh boy …

4

I don’t think it’s possible to prepay all the way to 2035. The regulation was about time-travel to fix missed 3a contributions, starting with 2025.

5

I’m not talking about pre-paying. I’m saying in 2035, if you can back fill your 2025 one if it is missing (assuming all years in between are full).

6

They opened a nice line to save tax. If you own a house, there are only a few years left that you can deduct renovation costs. So instead of paying into 3rd, just paint your house or get a new kitchen/bathroom and so on. You then have 10 years to pay in the 3rd and deduct the money.

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7

With UBI/UHI on the horizon, pension contribution sounds a bit risky tbh. NFA. It’s just my opinion. Also with the kind of volatility seen in Stocks/ Metals/ Commodities/Crypto market due to geopolitical tensions, Mr Orangeman, Wars etc… fund managers are scrambling to make profits in these unpredictable markets.

9

2nd and 3rd pillars are designed as tax deferral. Swiss high salary expectation is for a quality of life and save money.

If you feel comfortable paying taxes up front and then managing what is left on the stock market, good for you.

This strategy does not work for a normal joe, jenine and those with families and other responsibilities beyound work (a quality of life).

10

There is an easy way to save almost all of those taxes: move it to Kanton Schwyz and then move yourself at least temporary out of Europe before taking it out. As I was only 51 when taking it out there were not much other possibilities anyhow, so why not do it right from the beginning…

11

OK. I tried to sort out posts into the right topics.

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12

Thank you phil_MCR

13

does it mean that entire sum can be deducted for tax purposes? so let’s say in 2027 i pay for both 2026 and 2027, can i deduct 14000 in 2027?

14

Yes.

Also, note the following framework conditions:

  • you have to fill up the current year completely before you can contribute retroactively.
  • retroactive payment are limited to one payment per retroactive year. This is different from payments for the current year.
  • you had to be employed or self-employed for that retroactive year.

Source of my information: https://finpension.ch/de/wissen/saeule-3a-rueckwirkend-einzahlen/