Multiple 3a accounts: should I split my pillar 3a?
Paying into your pillar 3a saves you taxes. If your pillar 3a funds are spread over several accounts, you can also save when it comes to payout. Comparis explains “3a splitting”.
23.02.2024
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1. Can I have multiple pillar 3a accounts?
In principle, you can open as many 3a accounts in Switzerland as you wish. However, the number of accounts per provider is often limited to a maximum of five.
2. Why does it make sense to have multiple 3a accounts?
There is a very simple reason for this: tax progression. After all, when the saved retirement capital is paid out, capital disbursement tax is due. The higher the amount paid out in one year, the higher the taxation. However, you can only withdraw the full amount saved in a pillar 3a account.
It therefore makes sense to distribute your 3a savings in several accounts. This allows you to make staggered withdrawals later. You can distribute the payment over several years and thus counteract the negative effects of tax progression.
Comparis tip
On the Federal Tax Administration website you can calculate how much tax will be paid on a capital payout.
3. How many 3a accounts should I have?
The number of 3a accounts you should have depends on the number of years in which you can make pillar 3a payments. Example: if a single man retires at the age of 65 and wants to close his first 3a account at the age of 60, he has six years to make 3a withdrawals. That means would make sense for him to have six accounts.
The following applies to married couples and registered partnerships: pension benefits paid out in the same year are counted together in the tax calculation. Due to possible temporal overlaps, two to three pillar 3a accounts are useful per working person.
Comparis tip
Pillar 3a assets are not protected in the event that the financial institution goes bankrupt. However, they are privileged under bankruptcy law – up to a maximum of 100,000 francs per customer. This means that in the worst-case scenario, you won’t get all your money back. By holding accounts with different financial institutions, you reduce the risk of loss in the event of bankruptcy.
4. Can I split 3a accounts later?
A subsequent division of your pension funds into several 3a accounts is not allowed. In principle, you cannot transfer partial amounts from one account to another.
Comparis tip
Partial withdrawals from your restricted pillar 3a savings are only possible in connection with advance withdrawals for residential property.
5. What is the maximum amount I can deposit per year?
Employees with a pension fund can pay in 7,056 francs into pillar 3a per year (as of 2024). You can deduct this amount from your taxable income.
Maximum pillar 3a contributions when you have multiple accounts
When splitting 3a accounts, the maximum contribution does not change. The sum of the individual accounts must not exceed the maximum amount.
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This article was first published on 04.05.2018