3rd pillar A tax deductions in 2023

The tax deductions of the 3^th Pillar A in 2023

The 3^th Pillar A is known for its numerous benefits but especially for its fiscal advantages.

The main tax advantage is the deduction of the premium injected from taxable income. The ceiling of the deductible premium is defined according to the maximum or minimum AHV pension. In principle, this AHV pension is adjusted every 2 years and more quickly if the price increase is too high during the year.

In 2023, AHV pensions are increased by 2.5% and as a result, the maximum deductible amounts In 3^th pillar A as well. It's up to us to take advantage of it.

For persons affiliated to a pension fund

The new deductible limit for pillar 3A in 2023 is CHF 7,056.-

The symbolic bar of CHF 7,000 has been crossed and this increase makes it possible to benefit from even more tax savings.

The other advantages, such as the non-taxation of earnings or the capital that does not enter into the wealth, remain in place.

The trend is therefore still to improve private pension provision, including the 3^Memes A pillars are part.

For persons who are not members of a pension fund (e.g. self-employed persons)

The new deductible limit for pillar 3A in 2023 is CHF 35,280.-

Be careful, however, this is the maximum ceiling because another limit is that the maximum deductible amount is 20% of the annual net income.

This allows people who are not affiliated to an LPP pension fund to compensate for non-contributions to it and to prepare for retirement.

Adjustment of the amounts paid into the 3rd pillar

For 3A bank account solutions, all you have to do is adapt the payment amount at the time of the transfer and reach the ceiling by December 31 of the year.

For solutions of 3^th In pillar A insurance, all you have to do is request an increase in premium (using a medical questionnaire in some cases) or to make an additional payment at the end of the year in order to go as much as deductible as possible.

In some cases, the adaptation (indexing) is done automatically without a medical questionnaire.

Improving your retirement

The adjustments of the deductible amounts in 3^th Pillar 3a make it possible to align pension provision with inflation. This is very important when it comes to investments over decades.

In fact, a capital of CHF 100,000 today is the equivalent, with inflation at 1.5% per year over 30 years, to a capital of 63,000.

In terms of 3^th pillar and foresight, remain attentive to the economic environment and adapt your needs over time. This will make the difference between good and bad savings 3^th pillar.