If it’s cool with your canton to have >4 then the plan sounds good for you. I had the same situation with 1 account getting way higher than the others but my canton is sensitive to more than 2-3 3a accounts, so I can’t go too far in qty.
I’ll probably buy into my p.f. 3-5y before retirement and take it back as capital at retirement. Hoping to still be around to enjoy it
If I remember correctly, no canton restricts the number of 3a accounts you can have. It’s about the number of tax years you spread your withdrawals when retiring. Whether you have 5 3a accounts and withdraw one each year between 60 and 65 or whether you have 10 3a accounts and withdraw two each year between 60 and 65 doesn’t affect the amount of taxes you pay (assuming even distribution across accounts) and thus, the tax authorities shouldn’t care.
That said, while it’s not possible to split 3a accounts, it is possible to merge 3a accounts, so it shouldn’t be a significant concern either way.
This is indeed a better precision. I was indeed projecting to retirement. And you also give several good examples where we can merge, use for buy back of p.f., or even start our buisness etc in the meantime…all valid. And can go for several if it makes sense in someone’s unique case.
However in Neuchatel, I’ve had several discussions with tax office to test their consistancy across their people and they all have said « while not illegal on a federal level (no formal restriction exists), they will treat anything above 3 as suspicious and anything more than 4 as « likely » tax evasion (not optimisation) » …I know it’s sounds weird but honestly 4 at retirement will be enough for me so not a big deal either.
After checking over several months with several replies aligned to this, no sense provoking either.
And if you voluntarily work for another five years until 70 you have ten years for withdrawal meaning up to ten portfolios would make sense from a tax point of view. I guess the tax office employee doesn’t even know the law correctly which is kind of sad.
After writing the question, I’ve had the exact same idea.
See above, Jay’s answer. You can have 25 3a accounts, but you have to consider the maximum number of years over which you can withdraw them without some cantons counting it as tax evasion. If you have 25 accounts, you can close 5 each (or 7-8 if only 3 years are allowed). They all count towards the year.
My understanding is that it’s the whole point of the tax office response, they think it’s being structured for no reason except avoiding taxes. The 5 years is considered the limit of how much you can spread it out without being a pure tax avoidance in many cantons (but practice can differ between cantons).
This is what I thought but after calling 4-5 times and getting the same answer each time, I had to conclude that it’s a clear instruction for them.
I didn’t ask outside of the std scenario I was considering (5 accounts for the std period 60-65), but they were clearly avoiding to say « yes that’s fine » and were intentionally implying that I would have issues >4.
Perhaps in the end it’s an intentional filter to dissuade but overall a bluff? I can’t know.
Well then their reasoning wouldn’t make sense because you are “avoiding” taxes already when having more than one account. Moneywise the more accounts you have the more taxes you save but you save taxes no matter if you have 2, 3 or 8 accounts.
I found an article, which was last updated on the 05.12.2023, in german while researching (I guess you can use the built-in browser website translator) which states the following:
Canton of Jura:
Maximum of two 3a accounts with the same bank/provider
Canton of Zurich and Geneva:
Maximum of three accounts no matter how many banks/provider
There are unfortunately no sources in the article. So I can’t confirm or deny the text.
No you are allowed to have 5 accounts. Actually you can have as many as you want during your lifetime as long as you combine them before withdrawing and limit the withdrawals to 5 spread over 5 years. I am in a similar situation with my mortgage and as soon as my Property is valued again I’ll send the pledged funds to Viac.