Topping-up the 3rd pillar for previous years

Finance, Taxes, Banking, Insurance and Retirement
1

It seems not retroactive for existing years of missing 3a which limits the usefulness.

https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen.msg-id-103044.html

AI summary/translation:

  • The Bundesrat has introduced a new provision for Säule 3a (compulsory personal pension provision) that allows individuals who have not paid or only partially paid their contributions in certain years to make those contributions retrospectively through purchases.
  • This change was adopted in a motion (19.3702) by the Ständerat Erich Ettlin and will take effect on January 1, 2025.
  • Individuals can retroactively pay contributions up to ten years in the future, with a maximum of a “small contribution” (e.g., 7,258 CHF in 2025) allowed per year in addition to regular contributions.
  • These contributions can be tax-deductible, with both the regular and purchase contributions fully deductible from taxable income.
  • The Bundesrat has introduced specific regulations to ensure the legitimacy of these purchase contributions and their review by tax authorities.
  • Annual reductions in direct federal tax are estimated to be between 100 and 150 million CHF, with 21.2% allocated to the cantons and 78.8% to the federal level. For cantonal and municipal income taxes, reductions are estimated to be between 200 and 450 million CHF annually.
  • The Bundesrat has also decided, based on the recommendations of the Expert Group on Task and Subsidy Control, to adjust some elements of the tax privileges for the 2nd and 3rd pillars. Details for the future tax treatment of capital gains from the 3rd pillar will be presented in a draft for consultation in January 2025, including the taxation of capital gains from purchases, which can be made by tax-payers.
1 Like
2

DId I understand this correctly, this does not work retroactively. Meaning I cannot pay in for a year I missed. (example 2019)

3

https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen.msg-id-103044.html

So it looks like that starting next year we will be able to catch up with 3rd pillar payments (up to 10 years back).

Do you see it as a good tax-optimisation strategy?

Do you think it will be possible to pay also for the years preceding one’s move into Switzerland?

4

It only applies for missed years from 2025 onwards.

5

I would wait and see where we come out on taxation at withdrawal - if they increase the tax then may not be worth it any longer all together.

4 Likes
6

I don’t think they will raise taxes on the withdrawal, at least not this round, but it is an uncertainty.

7

Is it only me or does this sentence make no sense?

As I understood it, it IS retroactive. For example the person who asked about the 2019 could pay in now but only if they also pay in for 2025 as well.
But I seriously don’t think somebody could pay in for time before they moved to Switzerland.

This. And that’s what I expect as well. Only, you will not know until you pull the money out (or to make it more “fun” shortly before you do).

8

Edited for clarity.

1 Like
9

Thanks, now it’s very clear.
But are you sure? What would be the point in that new law/rule? An “in case you forget in the next ten years” rule? (it’s not that the Bundesrat wouldn’t have more realistic/actual problems to solve).

I think I’ll do some research on that. Domani, mañana :smiley:

10

I also don’t think so as so many institutions are making good money on it. I also don’t think they can do that retroactively without people being really pissed. But before making new payments I am now cautious.