According to AHV legislation, self-employed people may redeem benefits of the 2nd pillar only up to one-half of the income indicated by the tax authorities.
Please note again the redemption requirements:
- The option must be laid down by law
- The limits of redemption must comply with Art. 79b BVG
- The redemption must be fiscally allowed
When, for example, a tax administration indicates an income of CHF 200,000.- and a redemption of CHF 250,000.-, it is no longer possible to deduct CHF 125,000.-(half of the redemption), but “only” CHF 100,000.-(half of the indicated income). Therefore, it is CHF 100,000.- instead of CHF 75,000.- which is today subject to AHV.