Comparison of iDeCo, NISA and Tsumitate NISA

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This page is a work in progress and there are currently significant gaps in the table to be filled in due course.

iDeCo, NISA and Tsumitate NISA are all tax advantaged accounts for Japan-resident adults which are suitable for long-term savings and investments.

The below table summarises the features, allowing for simple comparisons. This may be helpful to those trying to determine which account(s) might be best for them/their families.

Note that in any calendar year, an individual cannot contribute to both a NISA and a Tsumitate NISA.

Comparison of iDeCo, NISA and Tsumitate NISA
iDeCo NISA Tsumitate NISA
Eligibility Most residents aged 20-59 Resident aged 20+ Resident aged 20+
Term of investments Funds remain invested until age 60-70 5 years 20 years
Maximum annual investment Varies according to circumstances;

¥144,000 - ¥816,000

¥1.2million ¥400,000
Are contributions deductible from income tax? Yes No No
Investment options Choice of about 35 investment options from your provider, including mutual funds, cash, etc. Listed stocks, funds, ETFs, REITs Mutual funds
Withdrawals possible? No withdrawals before 60 in principle. Yes Yes
Period when product is available to new investors Ongoing (while investor meets the eligibility criteria) Until end of 2023 (a New NISA with similar but tweaked rules will be introduced in 2024 and is set to run to the end of 2028) Until end of 2042
What happens at the end of the investment term? Funds can ordinarily remain invested between ages 60 and 70. Benefits can be taken as a lump sum, an annuity, or a combination of the two.
What happens if you leave Japan? Can manage funds from abroad but not make contributions; able to receive benefits abroad
What happens if you die during the investment term? Lump sum payable to next of kin