The interest of saving via a 3th Pillar A or B is to make a life project a reality. For example, buying a house, starting up your own business or improving your retirement.
The law issues strict rules for fully or partially withdrawing the assets of the 3th pillars. Indeed, the tax advantages of the various solutions are conditional on compliance with the objective of the law, which is to promote individual pension provision.
The 3th pillars A and B have different withdrawal conditions.
How to remove your 3th Pillar A
The withdrawal of the 3th Pillar A in banking or insurance is subject to defined conditions, namely:
- Becoming self-employed as a main activity (in the sense of AHV)
- Becoming the owner of your own property
- Going abroad permanently
- From 5 years before the official retirement age
- Be 100% disabled
These 5 conditions allow the total or partial withdrawal of pillars 3A. In the bank, you can recover the balance on your 3A account. In insurance, you recover the cash value (so be careful not to withdraw all of your assets in the first years, you will be penalized by a calculation including expenses not yet amortized).
How to remove your 3th Pillar B
The 3th Pillar B only exists in insurance. The law does not impose any conditions for the withdrawal of capital, but you should pay attention to several points such as:
- The cash value which is the amount you get back. Be careful not to withdraw all of your assets in the first few years, as this would lead to financial loss. Taxation. In fact, the income generated by your 3
- th
- Pillar B are not taxed on income under certain conditions, one of which is the duration and another is the age limit at the time of withdrawal. If these points are not respected, taxation on earnings will take place.
The consequences
In the event of a total withdrawal, the bank accounts go back to 0.- and you have the choice or not to continue them in the future. The insurances for their part end, so do the coverages and you no longer have contractual obligations.
In the event of a partial withdrawal, the 3As in banking or insurance continue with an adjustment of the amounts for the bank and the amounts, as well as coverage, for insurance.
In terms of taxation, the 3th Pillar A is subject to capital tax, which will depend on the amount received and on your fiscal residence. The 3th Pillar B is taxed on wealth throughout its duration and therefore has no taxation on the capital collected.
Conclusion
Retirement funds can be withdrawn quickly using a simple form that can be completed, signed and returned to the institution concerned. Don't lose sight of fiscal implications. A small clarification also, marriage means the signature of the 2 spouses for the withdrawal of the 3th pillars A.
