I’m wondering if anyone here knows the answer to the following question:
Is my wife allowed to do 2nd pillar buyins, with associated tax savings, in the same year(s) that I withdraw from my 2nd pillar for home ownership?
This sounds like a loophole to me, as even though the 2nd pillars are individual our taxes aren’t…
For an individual person, the second pillar regulations are to be applied on a consolidated view (even in case you have multiple solutions at once).
But yes, second pillar solutions are inherently tied to the individual person, and regulations apply independently, even if married. So yes, in terms of pension laws you can withdraw in the same year your wife buys-in. However, tax laws have the counter-loophole that tax avoidance is illegal.
To answer specifically: It depends.
- You asking in this forum because you plan to save taxes: Illegal, and will be corrected.
- Your wife buying-in in early 2022 with leftover cash and you suddenly have a fantastic real estate opportunity in late 2022 for which you withdrawn: Potentially legal, but will require quite some discussions, evidence and has a low chance of success.
- You and your wife agree on a postnuptial agreement for property separation retrospectively for January 1st 2022 and then buy real estate with 50:50 split for which you need to draw second pillar money while she has leftovers: Likely legal with decent chance of success, but will still require discussions.
With my wife we did this 2 years ago in canton Vaud. She made a voluntary contribution to her 2nd pillar, and the same year I made a withdrawal from mine.
Tax on 2nd pillar withdrawal was a completely separate filing and payment, there was no interference with the annual filing (made the following year that included the revenues and the 2P voluntary contribution as deduction).
As these taxes are handled by cantons, you should probably check how it really works in your’s. In Vaud, I could simply find the information on their web site, I didn’t have to ask.
Thanks 1742 and jmp!
Looks like there’s no consensus on whether this is illegal or completely fine to do. I’m in ZH, guess I’ll have to find someone from the tax office to provide the definitive answer…
Buyins reduce your taxable income, withdraws are taxed sperately. I see no basis how they could have a problem with that.
You are also allowed to make a final max 3a contribution on the account you’re going to withdraw.
My understanding is that they do have an issue with buyins and withdrawals too close in time (3 years) as long as they’re on the same 2nd pillar. For married couples, this becomes unclear to me as there’re two 2nd pillars involved but only one tax return that can benefit from the buyin.