Last update: 26.10.2024 16:55
A purchase into the pension fund results in a blocking period in Zurich and elsewhere for your lump-sum withdrawal. You can improve your retirement provision and save tax by making a purchase. But beware: after the purchase, there is a three-year blocking period (three-year rule) for an effective tax deduction. This period is important if you want to withdraw capital. Find out how to make smart use of the lock-up period and benefit from the tax advantages.
A purchase is a voluntary one-off contribution to your pension fund. With this payment, you increase your retirement assets and increase your pension. You can claim this payment as a tax deduction. Incidentally, these purchases are independent of your pillar 3a payments. Whether a purchase makes sense depends on your situation. In this article, we look at the conditions for a sustainable tax deduction when buying into the pension fund. You must observe the three-year blocking period.
What does the three-year rule mean for pension fund purchases?
If you pay into your pension fund, you must observe the 3-year rule. This period means that you may not withdraw any capital from your pension fund for three full years to the day after your purchase. This applies not only to the amount paid in, but to your entire pension assets.
According to a decision of the Federal Supreme Court 1from January 2021, the blocking period applies to all types of lump-sum withdrawals from the second pillar. It applies regardless of why you want to withdraw capital. The rule is intended to prevent tax abuse. The state wants to ensure that you are genuinely using the purchase for your retirement provision and not just to quickly save tax.
How is the retention period calculated after the purchase?
The vesting period of three years is set out in Art. 79b para. 3 BVG2 is regulated. It states: “If purchases have been made, the resulting benefits may not be withdrawn from the pension plan in the form of capital within the next three years.” The vesting period begins on the day of the purchase and ends exactly three years later. Let’s assume that Pesche from Bern buys into his pension fund on May 10, 2024. His vesting period begins on May 10, 2024 and ends on May 10, 2027. From May 11, 2027, Pesche could withdraw capital again without any tax disadvantages.
Please note that each purchase triggers its own blocking period. If you make several purchases, each purchase has its own blocking period. Let’s look at Lisa’s example. She makes her first purchase on March 15, 2024. She makes her second purchase on September 20, 2025. Lisa can only withdraw capital from her pension fund again from September 21, 2028 without any tax consequences.
Our tip:
Plan your purchases into the pension fund carefully. Take your personal situation and possible future lump-sum withdrawals into account. This will allow you to make the most of your purchase into the pension fund and the associated tax deduction.
What are the consequences of a lump-sum withdrawal before the vesting period expires?
An earlier lump-sum withdrawal from your pension fund has tax consequences. If you withdraw money before the deadline, the tax office will regard this as a taxable early withdrawal. The amount you withdraw early is counted as part of your income. This increases your taxable income and therefore your tax burden.
Let’s take another look at Lisa from Basel: She made her purchase on March 15, 2024. On April 1, 2026, she wants to receive CHF 40,000 for a new heating system. The blocking period of the three-year rule is still running. Her capital withdrawal will therefore be added to her 2026 income. This leads to a higher tax burden.
Our tip:
Think carefully about whether you really need the money. It is often better to wait for the lock-up period. This way you can take full advantage of the tax benefits of the purchase.
What is special about purchasing a pension fund: vesting period Zurich?
There is a special advantage for Zurich residents. The canton of Zurich has a special tax rule. You can make purchases there up to retirement age without the three-year blocking period. You can claim this as a tax deduction. But beware: this only applies to amounts up to CHF 12,000 per year.
The Zurich tax book states: “For economic reasons, offsetting is waived up to a purchase amount of CHF 12,000 per year. ” This means that small annual purchases remain tax-free. The usual 3-year period applies to higher payments. For other cantons, please check with your tax office.
Our tip:
In Zurich, the three-year rule only applies in a limited form. You may also pay in up to CHF 12,000 per year in the three years up to retirement and deduct this amount from your taxes. This applies even if you want to withdraw capital instead of a pension at a later date.
Summary: Pension fund purchase: vesting period Zurich
Buying into the pension fund improves your retirement provision and brings tax advantages. The three-year rule is important here. Because it helps you to avoid tax disadvantages. You now know: The vesting period starts the day after your purchase and lasts three years. An early withdrawal can increase your tax burden and weaken your pension provision.
The Zurich special rule allows you to continue paying in even after a withdrawal. This allows you to adjust your pension provision flexibly and take advantage of tax benefits.
Buying into the pension fund is a great opportunity for your future. Observe the vesting period and benefit from the particularly advantageous regulations as a taxpayer in Zurich. This allows you to optimize your retirement provision and save taxes. Plan your purchases smartly. This way, you can secure a better pension and tax advantages right up to the end.
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Disclaimer
We have taken great care with the content of this article. Nevertheless, we cannot rule out errors and cannot guarantee that it is correct and complete. This article does not replace tax advice. We do not offer tax advice and recommend that tax issues are always clarified with a tax expert and/or the relevant cantonal tax administration. Any liability is rejected.