RetireJapan

Tsumitate Wrestler wrote: ↑Fri Jan 12, 2024 2:37 pm

adamu wrote: ↑Fri Jan 12, 2024 1:40 pm Is this statement on the wiki incorrect?

The investments can remain invested tax free until the child turns 18, even after 2023.
No withdrawals in principle until 18… however, when the JNISA ends in 2023, funds will be transferred to a regular securities account, where withdraws are permitted.

https://retirewiki.jp/wiki/Junior_NISA

I've not been following but if somebody who knows what they're talking about could update it, Karma will shine down upon you.

Yes, it's incorrect. Funds will not be transferred, but will remain tax free until the the age of 18.

At 18 the funds will be dropped into a taxable. No rollovers.
..

Moneymatters wrote: ↑Mon Jan 15, 2024 2:03 am

Tsumitate Wrestler wrote: ↑Fri Jan 12, 2024 2:37 pm

adamu wrote: ↑Fri Jan 12, 2024 1:40 pm Is this statement on the wiki incorrect?



https://retirewiki.jp/wiki/Junior_NISA

I've not been following but if somebody who knows what they're talking about could update it, Karma will shine down upon you.

Yes, it's incorrect. Funds will not be transferred, but will remain tax free until the the age of 18.

At 18 the funds will be dropped into a taxable. No rollovers.
..

I don’t what to be “that guy”. Ha. Who am I kidding. Now I want a t-shirt with “That guy” on it.

Anyway. I think the limit is age 18 and at least 5 years invested as NISA.

So if the kid was 17 last year and invested into J-NISA that year’s investment will stay as NISA for a few more years even passed 18. Even though they get a password and access to it at 18.

My son has J-NISA investment that won’t leave NISA until starting next year when the first year exceeds the 5 year limit.. he will turn 20 this year..

Obviously by 2028 This becomes a moot point.

RetireIn10 wrote: ↑Mon Jan 15, 2024 4:13 am Thank you for your insight everyone. I'm not sure what I will do, but losing out on a potential 120% gain (8%/year x 15 (number of years until my son's 18th bday) seems sad to me. It's a lose-lose, but I'll have to live with my decision.

Tsumitate Wrestler wrote: ↑Mon Jan 15, 2024 4:09 am

Moneymatters wrote: ↑Mon Jan 15, 2024 2:03 am

Tsumitate Wrestler wrote: ↑Fri Jan 12, 2024 2:37 pm

Yes, it's incorrect. Funds will not be transferred, but will remain tax free until the the age of 18.

At 18 the funds will be dropped into a taxable. No rollovers.
..

I don’t what to be “that guy”. Ha. Who am I kidding. Now I want a t-shirt with “That guy” on it.

Anyway. I think the limit is age 18 and at least 5 years invested as NISA.

So if the kid was 17 last year and invested into J-NISA that year’s investment will stay as NISA for a few more years even passed 18. Even though they get a password and access to it at 18.

My son has J-NISA investment that won’t leave NISA until starting next year when the first year exceeds the 5 year limit.. he will turn 20 this year..

Obviously by 2028 This becomes a moot point.

Are you sure about that? Many sites seem to suggest at the age of 18 it get immediately bumped into the taxable.

The rules are changed in January 2024.

Perhaps you can check your son's account for us , and the wording at your Sec.?

Moneymatters wrote: ↑Mon Jan 15, 2024 8:50 am I’m thinking just a plain black T-Shirt with white lettering. Suggestions for the font?

Tsumitate Wrestler wrote: ↑Mon Jan 15, 2024 4:09 am
Are you sure about that? Many sites seem to suggest at the age of 18 it get immediately bumped into the taxable.

The rules are changed in January 2024.

Perhaps you can check your son's account for us , and the wording at your Sec.?

beanhead wrote: ↑Mon Jan 15, 2024 11:16 am

Tsumitate Wrestler wrote: ↑Mon Jan 15, 2024 4:09 am
Are you sure about that? Many sites seem to suggest at the age of 18 it get immediately bumped into the taxable.

The rules are changed in January 2024.

Perhaps you can check your son's account for us , and the wording at your Sec.?

This is what happens at 18

1)new password is issued (certainly for Rakuten)

2)new NISA is automatically set up in the following January

3)existing junior NISA accounts are left as they are, for the maximum of 5 years.

So an 18-year-old who has previously had junior NISAs will then have a new NISA, a tokutei account, and the legacy junior NISAs when they (or in my case, when I ) look at the account overview.

As discussed elsewhere, for under-18s, their junior NISAs remain, but the only account you can add to until 18 is the tokutei account. There is no tax-advantaged option.

Tsumitate Wrestler wrote: ↑Mon Jan 15, 2024 1:08 pm

beanhead wrote: ↑Mon Jan 15, 2024 11:16 am

Tsumitate Wrestler wrote: ↑Mon Jan 15, 2024 4:09 am
Are you sure about that? Many sites seem to suggest at the age of 18 it get immediately bumped into the taxable.

The rules are changed in January 2024.

Perhaps you can check your son's account for us , and the wording at your Sec.?

This is what happens at 18

1)new password is issued (certainly for Rakuten)

2)new NISA is automatically set up in the following January

3)existing junior NISA accounts are left as they are, for the maximum of 5 years.

So an 18-year-old who has previously had junior NISAs will then have a new NISA, a tokutei account, and the legacy junior NISAs when they (or in my case, when I ) look at the account overview.

As discussed elsewhere, for under-18s, their junior NISAs remain, but the only account you can add to until 18 is the tokutei account. There is no tax-advantaged option.

I was 100% unaware of the weird loophole here. Interesting stuff. It was not spelled out in most of the literature I found.

Thank you "that guy".

Moneymatters wrote: ↑Tue Jan 16, 2024 9:33 am
OK. I know I’m being petty now. But that isn’t gonna stop me..

This:

“3)existing junior NISA accounts are left as they are, for the maximum of 5 years.“

Should ackchyually state.

“ 3)existing junior NISA account years, that are yet to have benefitted from at least 5 years of tax free investment, are left as they are until they reach that five year threshold.”