Everything You Need to Know About Retroactive Contributions to Pillar 3a

The Swiss Federal Council has decided to allow retroactive payments into Pillar 3a. This measure implements the motion 19.3702 by Councilor Erich Ettlin and offers citizens more flexibility in their retirement planning. In this blog post, you will learn how this change works and the tax benefits it brings starting in 2025. Discover how you can take advantage of this new opportunity and better plan your financial future.

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What is the New Pillar 3a Contribution Limit for Retroactive Payments?

From 2026, retroactive contributions to Pillar 3a will be possible. The new maximum amount for Pillar 3a from 2026 is currently set at CHF 14,112.

When Can You Start Closing These New Pillar 3a Contribution Gaps Retroactively?

You can start closing these gaps the following year, with the first opportunity being in 2026.

What Are the Conditions for Retroactive Pillar 3a Payments?

• Employment income subject to AHV in Switzerland.
• Contributions can go back up to 10 years, starting from 2025.
• The maximum contribution for the current year must be paid in full.
• Application must be submitted to the pension foundation for retroactive payment.
• NEW! The smaller 3a contribution of CHF 7,056 is also available for individuals without a pension fund.

How Can You Benefit from Retroactive Pillar 3a Payments Starting in 2025?

You can retroactively make up for missed contributions in years where you did not contribute the maximum to Pillar 3a. Important: The maximum Pillar 3a contribution must have been paid in the current year regardless of any gaps.

What Are the Advantages of Retroactive Pillar 3a Payments?

Retroactive contributions to Pillar 3a offer several benefits:

• Tax Optimization: You can fill contribution gaps and reduce your tax burden.
• Flexibility: Contribution gaps can be closed retroactively for up to 10 years.
• Combining Gaps: Multiple contribution gaps can be combined and paid in a single year.
• No Waiting Period: Unlike pension fund purchases, no waiting period applies.
• Investment Strategy: Choose your investment strategy.

How Long Can You Pay Retroactively into the New Pillar 3a?

You can retroactively make up for any Pillar 3a contribution gaps that arise from 2025 for up to 10 years. For example, if you have a gap in 2026, you can fill it retroactively until 2036.

How Can You Close Pillar 3a Contribution Gaps? – An Example

Let’s assume you have contribution gaps in 2025 and 2026. You can retroactively pay them in 2027. However, note that the maximum allowable purchase amount per year cannot be exceeded. If your cumulative gaps exceed the annual maximum, the excess amount will be forfeited.

Planning Pillar 3a Contributions is Key

It's essential to plan your contribution gaps and payments carefully:

• Adhere to the Maximum Contribution: You cannot contribute more than twice the maximum in one year.
• Early Application: Additional contributions must be applied for and approved by your Pillar 3a provider.

Who Benefits from Retroactive Pillar 3a Payments?

Anyone who wants to close a contribution gap in Pillar 3a from 2025 onwards. This could include students, stay-at-home parents, or those with lower incomes. Additionally, it may be an alternative to a pension fund purchase in the case of inheritance or gifts.

Impact on Married Couples

Married couples should approach this strategically:

• Staggered Withdrawals: One partner may delay withdrawing from their Pillar 3a accounts to continue making retroactive contributions.
• Combined Contribution Gaps: Contributions should be planned so as not to exceed the maximum limits.

When Can I No Longer Make Retroactive Payments into Pillar 3a?

Once you make a withdrawal from a Pillar 3a account or portfolio into your private assets, this tax advantage ceases. This applies regardless of whether further Pillar 3a contribution gaps arise in the future.

Here are More Articles on Pillar 3a:

• Which Pillar 3a Investment Strategy is Right for Me – Smart eTax

Additional Links:

• https://www.admin.ch/gov/en/start/documentation/media-releases.msg-id-98831.html