You still have time to pay for 2023
Which Pillar 3a is the cheapest way (lowest TER, including FX and transaction fees) to invest all my money in SP500?
Iâve also heard that US no longer withholds the 15% tax on dividends for shares held in 3a, right?
Finpension would be the cheapest, though I donât understand the apparent sudden lust for the S&P500 we are seeing on this board. US funds have one of the best tax treatment possible for Swiss investors: low dividends and fully recoverable witholding taxes if held through a US domiciled fund (given your regular taxes outweigh the tax savings and you fill the right paperwork). They are best held outside of tax advantaged accounts (that is, there are other funds that would benefit more from it).
Why US stocks specifically?
Thank you, I will go with Finpension.
To clarify, finpension doesnât actually offer a fund tracking the S&P 500. However, it offers a MSCI USA pension fund without US WHT and without extra fees. The performance should be close to the S&P 500.
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There is an article in Tages-Anzeiger on this topic today. Here are the relevant parts:
Der Bundesrat hat am Mittwoch eine entsprechende VerordnungsÀnderung in die Vernehmlassung geschickt. Er handelt dabei im Auftrag des Parlaments, das vor drei Jahren eine entsprechende Motion des Obwaldner Mitte-StÀnderats Erich Ettlin angenommen hatte.
Allerdings soll es bloss möglich sein, BeitragslĂŒcken zu stopfen, die nach Inkrafttreten der VerordnungsĂ€nderung entstehen. Ein Einkauf setzt voraus, dass im betreffenden Jahr der ordentliche Jahresbeitrag vollstĂ€ndig entrichtet wird.
Remainder of the article is mostly about lost taxes due to this new rule.
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Here the official news:
Bundesrat will nachtrÀgliche EinkÀufe in die SÀule 3a ermöglichen (admin.ch)
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Nothingburger for me as Iâve paid the full amount into 3a in the past couple of decades (insert angry-old-man-shakes-fist-at-the-sky meme here).
Hopefully though a useful tax efficient saving opportunity for younger folks (and of course older folks who missed out in the past decade).
Thanks for sharing, @OrientExpress !
As pointed out by @OrientExpress, the proposal from the Bundesrat is the following:
it should only be possible to plug contribution gaps that arise after the amendment to the ordinance comes into force.
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Well so no real use for us.
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Oops, my bad.
Thanks for clarifying!
(Iâll then shake my fist even more angrily at the sky)
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Itâs a proposal. Nothing has been decided yet.
Parties and interest groups will add to or oppose the proposal. It has to pass both chambers.
It might still come to nothing or get more or less generous.
We have a more business friendly parliament. Do not despair.
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Great advice.
I am not despaired.
At all.
I also admit I am not adding anything valuable or even noteworthy here, so please just scroll on.
Meow.
The Federal Councilâs proposal builds upon amending the so called BVV3 ordinance, which he can do himself without the need for parliamentary approval. Of course, itâs always possible for Parliament itself to get active and pass a new law, but that would take time. In addition, the budget preview for the coming years is very much in the red zone, so even in Parliament, with all the other potential initiatives resulting in tax revenue losses (Abschaffung Eigenmietwert, EinfĂŒhrung Individualbesteuerung etc.), this will chill ambitions with regard to a - for the vast majority of people - niche area.
Sorry for the gloomy outlookâŠ
It does not.
Der Bundesrat hat an seiner Sitzung vom 22. November 2023 entsprechende Ănderungen der Verordnung ĂŒber die steuerliche Abzugsberechtigung von BeitrĂ€gen an anerkannte Vorsorgeformen (BVV 3) in die Vernehmlassung geschickt.
Amendments to the ordinance do not have to be approved by the chambers.
All they can do now is âreactâ to the proposal.
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Youâre right. My political science lessons have been too long ago. It might still be amended, though.
Project is in public âVernehlassungâ meaning that anybody (swiss citizen, associations, etc.) has the right to react, propose changes or criticize. All you have to do is write following the instructions displayed in the documents on this page Fedlex. Deadline is 06.03.2024
After that, the concerned office will present the Vernehmlassung results in a report and propose a new version of the ordinance to the Federal Council after another intern round.
As I see no changes have been made. The proposal of Alain Berset is totally different than initially anticipated. Max. 7k/year buy-ins for any missed (or not fully paid) year of the last 10 years. But not in retrospect, so only valid for missing contributions starting now.
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Not surprised at all, as it would only be a gift for wealthy people.
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So itâs fair for people who have been contributing since they were 20 years old? 
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