I was reading a blog post from Mr.RIP about the swiss pension system and stumbled across this interesting snippet concerning pillar 3a:
Can anyone shed some more light on this? I have never heard about this before. does your tax bracket determine the amount that “makes sense” to contribute to 3a and get the max deduction (a break even for tax deduction if you wish).
how much is the reduced rate mentioned for the 768CHF @ 33.3 tax?
My situation is as follows: taxable income was 40’000 CHF last year (nettoeinkommen) and I was taxed 3500CHF resulting in a ~11.43% tax rate.
So following that would it only make sense for me to contribute so much into pillar 3a that would result in a 773.58CHF deduction from my taxes (6768*12.43%).
This would result in me only contributing ~5400chf to reach that deduction.