You get a Tsumitate NISA account every year. This account is valid for 20 years. The 2022 TNISA account is tax free until 2042, the 2023 TNISA account is tax free until 2043 etc. What Haystack means is that you can hypothetically have more than 20 TNISA accounts when you start your 2043 TNISA account (The government hasn't actually extended TNISA to be this long yet but we're hoping)Roger Van Zant wrote: ↑Tue Jun 14, 2022 2:44 amSorry, I have no idea what this means:Haystack wrote: ↑Tue Jun 14, 2022 2:28 amNo. Roger, you you can use the Tsumitate Nisa MORE THAN 20 times.. The tax-free limit of one years contribution is 20 years. BUT you can use it more than 20 times.RetireJapan wrote: ↑Tue Jun 14, 2022 12:32 am
This is not how NISA works. Each NISA year is treated separately, independently of other NISA years.
So for 2022 tsumitate NISA would be tax-free until 2041, 2023 tsumitate NISA year would be tax-free until 2042, etc.
This is a VERY common misconception that I myself originally had.
「The tax-free limit of one years contribution is 20 years. BUT you can use it more than 20 times.」
So, can I keep paying into my tsumitate-NISA even after 20 years? So, say in 2050, I can still continue paying in, 29 years since I started?
I thought the clock starts ticking once you open your account, and you only have 20 years' to pay in? In my case 2021~2040.
I can pay in for 25 years? 30 years? Any limit?
I understand how each year's worth of contributions is only tax free for 20 years.
So my 2021 contributions (400,000 yen) are only tax free until 2040. I get that.
If I sell my 2021 t-NISA after 2040, I have to pay capital gains tax, yes?
The 2022 TNISA account has a 400k limit for 2022. When its 2023, you get a full 400k allowance for 2023 and so on. Nothing you do in 2025 affects your 2022 TNISA account unless you SELL where in that case your 2022 TNISA disappears.
If you sell your 2022 TNISA after 2042, you have to pay capital gains on the 2042 price as base. Lets say you have 100 yen in 2022 TNISA, its now 1000 in 2042. You keep it in a taxable account and it grows to 1100 in 2044. You pay capital gains tax on the difference between 1100 and 1000 (2042 price).