Japan's iDeCo Accounts -the best way to invest for retirement in Japan?

Today's video is a quick overview of Japan's iDeCo accounts.

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[KellyPettit]

I first read a couple books by Andrew Hallam which ultimately led me to your website. I have been reading your Monday newsletter for years now. Thank you for really truly helping me and my family. When it comes to money, I learned the hard way. I’m now 55 and a victim of fraud which has set me back immensely. Nevertheless, I fight to get back on track and I religiously follow you. Your videos are very insightful for dummies like me. Thank you so much, Ben san. 本当にありがとうございます。

[andresmoisesjua]

Thank you very much for this video! Very informative.

[alexweitz]

I recently joined a company which offers "Corporate DC" to their employees.
From what I understand, it is an alternative to an iDeco, but so far I couldn't find too much information about the differences, pros and cons and such.

I'd love if you could do a video about the topic one day.

[AlisonGranger-sz]

Hi, really appreciate all the work you're doing. If I haven't been paying into the nenkin, will I have to pay two years backpay if I start paying in? And, do you know if that's all the backpay they can make me pay? Again, cheers!

[mapleeikaiwa]

Could an American who is never planning on living in the US again or who has never filed taxes in the States invest in iDeco?

[alexweitz]

The hardest part of applying to iDeco is the paperwork, at least for me it is since my Japanese is quite bad.
I wonder if there is some source of info that tells you step by step on what are all these papers and which ones should I fill-in by myself vs which ones I send to my employer?

[ren]

Great video and great blog! Thanks for all the work!

[speedmao]

Thank you for your informative video. Is it possible to stop contributions at any time?

[scottmclellan]

Just a note, I believe some iDeco providers offer term deposits. Those should not conflict with PFIC, but won't be much better than keeping cash.

[emikami]

Not sure why iDeCo is advertised as being similar to a US 401(k) plan when it is closer to an IRA (Individual Retirement Account). iDeCo from a strict Japanese tax standpoint is outstanding because you get to reduce not only your Japanese National and Local tax but also Social Insurance cost upfront. As mentioned in the video, it can qualify for Taishokukin (one time retirement payout) or as a series of payment qualifying for Koteki Nenkin Kojo (Public pension, etc. deduction) Most of recommend the one time retirement payout option because it is much more likely to qualify for a completely tax free withdrawal. These days, I'm hearing about higher fees for some iDeCo custodians so I wonder if you can just transfer it to another custodian without tax consequence and before age 60 to lower the fees if your provider has become less competitive?
That age 60 lock-up might be an issue if there's any chance that you'll leave Japan then. The other country may not give tax breaks to such account. So from that standpoint, NISA is far simpler because you can just close a NISA before you leave Japan.
How iDeCo will be treated in the U.S. is unknown. Japanese Citizen working in the U.S. might still have an iDeCo account. Since they are living in the U.S., they will be subject to US tax. So this isn't just an issue with US Citizens living in Japan.
If the US taxing authority audits someone just for having an iDeCo as a US Citizen, I would question the treatment of Japanese citizen working in the U.S. with an iDeCO and how they are treated from U.S. tax standpoint. So there's some chance it won't be treated as a PFIC by virtue of being inside a foreign retirement plan.
I wonder if it will be worth someone's effort to ask IRS at this address. I found this address in IRS Publication 514:

Internal Revenue Service
International Section,
Philadelphia, PA 19255-0725

[lazyotaku]

Hi good day. I just want to ask about investment in general including ideco. I want to know if for example something happened to me(accidents etc.) what will happen to my account? Will my family get it without knowing my id and password or can they call the rakuten securities and allow them to sell and pull out my investment? specially the ideco account. I still have 30+ years till i can pull it out and a lot of things can happen in that period.

[kenzachow]

I hear you retire in Japan at 65 years old. Is IDeCo till 60 years old?

[uapino]

I'm 51. Should I start with Ideco soon (I understand I won't see anything until 60)?
Or should I try first Nisa/tsumitate Nisa?

[renokuhara]

Can you apply iDeco thru your employer?

[longtermerr]

Just a note, I don't think 12, 000 is a minimum. You can put in less.

[bfuisting]

Some feedback on your way to YouTube stardom: the mini cut outs of pauses are quite annoying