When withdrawing retirement capital, such as from pillar 3a or a pension fund, taxes are due because the amount is treated as one-time income. This taxation is applied at a reduced rate and separately from other income. However, for larger amounts, tax progression can still result in a significant financial impact.
Retirement capital is taxed at cantonal and municipal tax rates. The differences can be significant depending on the canton.
Larger withdrawals may lead to a higher tax rate being applied. Yet this impact can be reduced with smart planning.
Dividing retirement savings among various accounts can help optimize the tax burden.
Examine available retirement savings (pension fund, pillar 3a) and their tax implications.
Determine the best time and strategy for capital withdrawal.
Spread your withdrawal across several years to reduce tax progression.
Have several pillar 3a accounts to distribute the tax burden through staggered withdrawals.
Analyze the tax regime of your domicile and consider optimizing taxes by moving to another place of residence.
Compare the tax burden of various cantons.
Support in applying for and handling a capital withdrawal.
Advice on tax-advantaged investments of the withdrawn capital.
It pays to start paying into pillar 3a early – not only do you save for a specific purpose, but you also benefit from attractive tax deductions. smzh is pleased to show you how to best analyze your financial situation, set savings goals, and assess risks properly.
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The smzh Taxation of Capital Withdrawal calculator enables you to clearly establish the tax burden associated with a withdrawal of your retirement capital.
The smzh Tax Calculator makes it possible for you to determine your likely tax burden by entering your personal data.
Reduce your tax burden when withdrawing retirement capital – smzh is by your side.
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The capital is taxed as one-time income at a reduced tax rate, separately from other income.
You can reduce tax progression by opting for staggered payments, using several pillar 3a accounts, and strategic planning.
The tax rates and regulations on capital withdrawal vary strongly by canton. It may pay to change canton of residence prior to a withdrawal.
The earlier you start planning, the greater your options. Ideally, you start several years before a planned withdrawal.
In this case, too, withdrawn capital is subject to tax. Careful planning is important to avoid financial surprises.
