In a corporate-type DC, tax benefits are available at each stage of contribution, investing and benefit receipt.

 

A version of a corporate-type DC commonly referred to as "opt-in" is a system in which contributions are made from your salary.

The total amount of contributions made by the company and the individual will be credited to a corporate-type DC account as "plan sponsor contributions". The contribution by the individual does not appear in the "Participant Contribution" of the AnswerNet.

 

[Contribution]

Since contributions are not considered employment income, income tax and residential tax may be reduced due to lower income.

If the standard monthly remuneration is lowered, the burden of social insurance premiums may also be reduced. However, the lower amount of social insurance premiums paid may decrease the following.

(1) Benefits of Employees' Pension Insurance

(2) Sickness and injury benefits and maternity benefits of National Health Insurance

(3) Unemployment benefits, childcare leave benefits, nursing care leave benefits, etc. of employment insurance

 

[Investing]

Profits during investing are tax-exempt.

 

[Benefit receipt]

Lump-sum receipt is subject to "retirement income deduction" and periodic receipt is subject to "public pension deduction".

However, tax will be imposed on the portion exceeding the deduction limit.

Please note that the benefit amount depends on the investment results and that, in principle, early withdrawal is not allowed until age 60.