Duration and free withdrawal
On a 3rd pillar 3B, you define for yourself the duration over which you want to save. In addition, it is possible to withdraw the capital at any time without any preconditions, unlike a 3rd pillar 3A.
Another specificity compared to the 3rd pillar 3A: the policyholder, the insured person and the premium payer may be different persons.
The cantons of Geneva or Fribourg benefit from advantageous taxation. Premiums paid into a 3rd pillar 3B are deductible from your taxable income up to the ceilings of each canton. Outside of these two cantons there is no deduction from taxable income.
Taxation and deductible amounts in Geneva
In Geneva you can deduct the premiums paid to a 3rd pillar 3B from your taxable income:
- Max. 2'232.- per year for a single person*
- Max. 3'348.- per year for a married couple*
- 913.- in addition to the deduction per child in your tax return considered as a dependant
Attention these deductions are only valid for a 3rd pillar 3B placed in insurance, there are none for a 3B banking.
The accumulated capital goes into your taxable wealth, however this tax will generally be very low compared to the tax savings made each year thanks to deductions.
Finally, there will be no tax on the withdrawal of capital, unlike the 3rd pillar 3A.
*The deductions are higher for people who do not contribute to the 2nd pillar or to a 3rd pillar 3A. See page on tax deductions
Taxation and deductible amounts in Fribourg
In the canton of Fribourg, it is also possible to deduct the premiums paid to a 3rd pillar 3B from your taxable income:
- Max. 750.- per year for a single person
- Max. 1,500.- per year for a married couple
Attention these deductions are only valid for a 3rd pillar 3B placed in insurance, there are none for a 3B banking.
The accumulated capital goes into your taxable wealth, however this tax will generally be very low compared to the tax savings made each year thanks to deductions.
Finally, there will be no tax on the withdrawal of capital, unlike a 3rd pillar 3A.
Taxation in other cantons
There is no deduction from taxable income, capital is included in taxable wealth and there is no tax when the capital is withdrawn.
3rd pillar 3A or 3B which one to choose?
It is sometimes difficult to make a choice between these two types of 3rd pillar, especially if you live in the cantons of Geneva and Fribourg.
Here is a list of the important things you need to consider before making a decision:
- It is not very interesting to do a 3rd pillar 3B outside the cantons of Geneva or Fribourg, because you will not benefit from any tax advantages
- The 3rd pillar 3A is preferred for major projects: retirement, buying real estate, leaving abroad and starting out as a self-employed person, because you will benefit from higher tax deductions and these projects are part of the conditions for withdrawing from the 3A.
- The 3th pillar 3B can be used for more specific projects, as the duration and withdrawal conditions are free, you benefit from great flexibility that will allow you to dedicate this savings to projects that are important to you: buying a car, a trip, a trip, future investment or saving for your children, everything is possible.
- If you don't have any specific savings plans in mind, you can open a 3B in addition to the 3A for major projects such as retirement, real estate, going abroad and becoming self-employed. This will allow you to reach your savings goals more quickly while taking advantage of 3rd pillar 3B tax deductions in Geneva and Fribourg.
- The 3rd pillar 3B offers tax deductions only for the 3rd pillars concluded in insurance (minimum 10 years of contract)
- It is possible to combine the tax deductions of a 3rd pillar 3A and a 3rd pillar 3B
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