December is the month of the accounts. The bank signage and the announcements in the entities remind us that it is the last moment to deduct in the IRPF up to a maximum of 8,000 euros or 30% of the income from work and economic activities, the lesser of the two for investing in pension plans.
This tax relief is transitory, Estate do not forgive and when the time comes to collect the accumulated money will have to pay what is received in the income tax.
Therefore, if you are already retired or about to do so, do your calculations. Rate if you are interested in receiving the savings in the form of income, capital or in a mix of both or if it is still convenient to wait.
Do not forget that if your plan is prior to 2007, you became a pensioner before 2011 and have not yet received your benefit, this December 31 ends the period to receive it in the form of capital with the 40% tax reduction. This benefit only applies to benefits that proportionally correspond to contributions made up to 2006 and their corresponding profitability, recalls José Manuel Ortiz, lawyer and counselor of Cuatrecasas. Those who retired in 2016 may also apply this year the 40% tax reduction if they decide to receive the money in the form of capital.
Calculator in hand do not forget that the application of this reduction can only be enjoyed once.
You can also contribute to a plan after the collection but in that case the beneficiary due to death will no longer be the owner but the spouse, child, disabled person, etc.
When I charge
Money immobilized in social security systems is a long-term saving. Therefore, it can only be received in the event of retirement, death, incapacity for work, severe dependence and great dependence. Also due to serious illness and long-term unemployment.
Recently, the possibility of collecting the rights corresponding to contributions made at least ten years old was established. For example, those made in 2015 can be recovered in 2025.
If the accumulated capital is received due to the death of the holder, the beneficiary would be taxed by the IPRF, not by successions, at the time of the rescue. The tax payment will be in accordance with the progressive scale, as it happens with the income from work.
This taxation is different from that of the insurance regime, where if the owner dies, the beneficiary will have a more favorable taxation, will pay according to the inheritance and donation tax, although the premiums paid will not have tax relief.
General limit The tax reduction of the taxable base is established at 8,000 euros per year, for all the investments made in social security systems (pension plans, insurance plans and corporate social security).
In favor of the spouse. The special limit for the spouse is 2,500 euros per year, as long as there is no income.
For the disabled. The special limit is 10,000 euros, without prejudice to their plans up to 24,250 euros.