RetireJapan

RetroNewbie wrote: ↑Mon Dec 11, 2023 2:35 pm I have a tsumitate NIsa with SMBC because I have an Olive account with them and it was easiest to set up.
It sounds like opening an SBI NIsa is beneficial in terms of paying by credit card and getting points though.
If so, should I just stop paying into my SMBC one after the final date (about Dec 15th iirc), leave the cash in there, and then open a totally new one with SBI in Jan?

Changing brokers with NISA is a 2-step process.
1) You apply to SMBC to move your NISA to another institution. It will take them a few days to process the 'cancellation' (effective 2024). They will provide you with a necessary letter.

2) You apply to SBI for NISA. They will send you forms to fill out. You will need the document from SMBC which confirms that you have cancelled NISA with them. Send this, with the form SBI provides and any other proof they need (MyNumber etc), and that will allow them to set you up with NISA for 2024.

As you probably know, there is a government check involved as well, so a few weeks are needed.
At this stage, you will probably miss the January tsumitate timing with SBI, but that is not such a big deal. You can catch up with a bonus payment if necessary.
It is not to late to cancel/move the SMBC NISA for 2024, if that is what you want to do.

[edit] somehow misses the second reply above, so that kinda answers my questions [/edit]

Anyone know if this is correct?

My understanding was that the 2024 Nisa isn't connected to the existing one, and that all I had to do was end this year's one and open a new one next year.
I haven't applied for a 2024 one with SMBC as I've been waiting for the past few months to close my current one, so I could open a 2024 one at SBI.

RetroNewbie wrote: ↑Tue Dec 12, 2023 12:42 am Anyone know if this is correct?

My understanding was that the 2024 Nisa isn't connected to the existing one, and that all I had to do was end this year's one and open a new one next year.
I haven't applied for a 2024 one with SMBC as I've been waiting for the past few months to close my current one, so I could open a 2024 one at SBI.

Basically all brokers with AUTOMATICALLY open a new 2024 NISA unless you expressly ask them not to.

RetroNewbie wrote: ↑Tue Dec 12, 2023 12:42 am Anyone know if this is correct?

I do. Just went through the process. I therefore thought that sharing would be helpful.

Thanks! It is indeed helpful!
My reply above somehow came after your reply, but was more aimed at zeroshiki's reply.

I'm not so worried about missing the start of the SBI one. I'm a bit confused as to why I need the letter from SMBC about closing that one, given that the 2024 Nisa was supposed to be disconnected from the Tsumitate one. Not that I'm surprised it's more complex than it should be

RetroNewbie wrote: ↑Tue Dec 12, 2023 9:46 am
I'm not so worried about missing the start of the SBI one. I'm a bit confused as to why I need the letter from SMBC about closing that one, given that the 2024 Nisa was supposed to be disconnected from the Tsumitate one. Not that I'm surprised it's more complex than it should be

No worries.

As TW notes, the way the brokers decided to implement the shift was to use an opt-out system. For existing NISA account holders, new accounts will be automatically set up. Unless you contact them to cancel the new NISA.

I'm still a bit confused I'm afraid.

If I cancel my existing SMBC Tsumitate Nisa then what happens to the funds?
(a) The cash value gets transferred to my current account?
(b) The funds remain invested but no further purchases are made and it remains tax free until the Tsumtate deadline expires (20 years?)
(c) Something else

I was going through the SMBC cancellation procedure online and it sounded like it was just going to cash everything out and put the money into my current account (which would then be taxed, right?)

I have an "old" NISA at Nomura and had to do the paperwork to start the "new" NISA at Rakuten. Part of that was to get a "廃止通知書" document from Nomura and send it to Rakuten so that they would allow me to open the new account. (I suspect this is what you meant by "canceling" the existing NISA account.) After issuing that document I could no longer add to my Nomura NISA but the existing investments will just roll off into my taxable Nomura account as they reach the end of their 5 year NISA periods. I did not have a Tsumitate NISA at Nomura so the situation is slightly different from yours, but I think in principle the same thing will apply: it doesn't result in your existing NISA investments immediately becoming taxable but you can no longer feed that old NISA account.

I haven't seen anything about a document. There's just a button to cancel the NISA on the SMBC Direct website.

RetroNewbie wrote: ↑Thu Dec 14, 2023 10:34 am I haven't seen anything about a document. There's just a button to cancel the NISA on the SMBC Direct website.

Did you check their website? https://qa.smbc.co.jp/faq/show/5183?site_domain=default