Pillar 3a into two places

Banks, Insurances & Third Pillar
22

Yes, that’s exactly what I was thinking about and referring to.

“Fired” Mustachians may want to reduce their tax burden. And they also may be working a minimum job rather than doing nothing. Working a minimum and/or part-time job often comes with disproportional social security and tax benefits compared to doing nothing (below the age of retirement).

However, in practice you would have no tax benefits (even a tax penalty when withdrawing) so it would be silly.

Depends. We’ve been discussing withdrawals at very low or even zero tax rate in the the other thread. :wink:

23

The situation you are describing only applies to self-employed people who do not have a pension fund (pillar 2).

If you are self-employed and do not have an occupational pension fund, you can only contribute up to 20% of your net annual income to the pillar 3a, up to the maximum limit (35,280 francs in 2023).

So yes, if you are (legally registered as) self-employed and earn 300 francs per month, you could theoretically only contribute up to 720 francs per year. However, if you were able to sign up to a pension fund (through an industry association, etc.), you would get the pillar 3a limit for people with a pillar 2, which in this case would be higher (7056 francs in 2023).

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24

The only relevant condition is whether you’re contributing to pillar 2 / BVG. This applies to self-employed without a pension fund but also to employees without BVG (income below BVG minimum). E.g. if you work part-time and your income is only 20k (and your employer doesn’t opt-in to pillar 2), you can contribute only 4k to pillar 3a (20% of 20k).

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