How much are you taxed when pulling out your 3rd pillar?

Taxes
1

Morning everyone,

I’ve been trying to find out how much I should have per 3rd pillar accounts in order to get taxed as little as possible, but couldn’t find any clear information online. Do you know of a grid/table that shows tax percentage brackets from 30K upwards ?

Does any of you know what the best amount is to have per account ?

I’ve read that 35K is when you get taxed the least, but considering the maximum amount is CHF 6 883 per annum and I’ve got another 33 years of work. I would need to have more than 5 accounts.

Should I just aim to add 45,5K per account ? Or is it best to have 4 accounts under 35K and the last one with +80K in it ?

I’m based in Canton de Genève where maximum is 5 accounts.

Thanks for the help !
Deka

2

When you get taxed the least is obviously 0…then the more you go up the more you pay, the taxation is generally progressive so the ideal situation is to have all 5 accounts with (approximately) the same amount of money. If you want to know the exact amount have a look at your canton’s website, you should find the relevant tax rates.

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3

The Geneva tax authorities published an Excel file allowing us to calculate the taxes due when withdrawing 2nd and/our 3rd pillar.

Available here: Calculer et payer l'impôt | ge.ch

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4

Depends on canton and municipality:

https://www.vermoegenszentrum.ch/ratgeber/wissensbeitrage/privatkunden/steuern-sparen/steuern-beim-bezug-von-vorsorgeleistungen.html

https://www.123-pensionierung.ch/de/rente-oder-kapital/kapitalauszahlungssteuern/

Foreign residents will have taxes withheld at source (depending on the canton in which the institution paying out is domiciled. They then pay their local taxes in country of residency and may be eligible for a refund of Swiss tax (depending on the applicable DTA).

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5

In Neuchatel there is literally a table you can download on the main cantonal site that has like 10 pages of amounts in a 3a and corresponding absolute tax due upon cashing out. To be honest, less than I was worried it would be (taxed at a lower % than regular marginal tax).

6

PostFinance has a nice calculator, you can fill in the zip code and other factors: https://www.postfinance.ch/en/support/tools-calculator/taxation-lump-sum-payment.html

Use it for simulating the potential taxes of your pension fund money (2nd and pillar 3a).
The probably most detailed calculator is the one from Logismata.

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