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Pension Annual Room for Residents of Rijswijk

Pension annual room for Rijswijk self-employed: tax-deductible savings up to 30% of income. Calculate, save tax, and build for the future! (128 characters)

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Pension Annual Room in Rijswijk

The pension annual room allows Rijswijk residents, especially self-employed individuals from neighborhoods like Innen or Oud-Rijswijk, to make maximum tax-deductible contributions to annuity or pension products in preparation for retirement. This is essential without an employer pension scheme. The Tax Authorities calculate it based on your income and existing pension accrual, providing tax benefits through deduction in box 1.

Why does the pension annual room matter for Rijswijk residents?

In Rijswijk, many residents build pension through their jobs, but self-employed or flexible workers without a second pillar must arrange it themselves. The pension annual room helps: you can contribute up to 30% of your 'pension contribution base' (income minus franchise) tax-deductibly into an annuity policy or savings account. This reduces your income tax and encourages pension building.

For 2024: 30% factor for annual room (6.44% for AOW). Depending on your income minus €17,000 franchise and accrued rights via employer or annuity.

Legal basis for the annual room

Regulated in the Income Tax Act 2001, art. 11(1)(d). Annuity premiums are deductible up to the annual room. See the Annual Room and Reserve Room Annuity Decree 2016 for details. The Tax Authorities set factors annually: 2024

  • Annual room: 30%.
  • AOW: 6.44%.
  • Franchise: €17,000.
Contribute too much? Then 20% revisionary interest.

Calculating your annual room

Step by step via the Tax Authorities tool, basic formula:

  1. Premium income: box 1 income minus franchise.
  2. Minus accrued pension rights (request from administrator/provider).
  3. Remainder x factor (30% annual room + 6.44% AOW).
  4. Total sum.

Example: €60,000 income 2023. Premium income €43,000. €5,000 rights: €38,000 x 30% = €11,400 (plus AOW).

Example: Self-employed from Rijswijk

Marieke from Rijswijk runs a business on Sir Winston Churchilllaan, €80,000 profit 2023, no pension scheme. Premium income €63,000, annual room ~€18,900. She contributes €15,000: saves €5,970 tax (40% bracket). Ideal for Rijswijk entrepreneurs. Self-employed pension.

Annual room vs. reserve room

Annual room: yearly. Reserve room: up to 10 years back, max. 7x annual room.

AspectAnnual RoomReserve Room
ScopeCurrent year10 years
Max30% contribution base7x annual room
ExpiresEnd of yearAfter 10 years
DeductionFullCalculated

See Reserve Room.

Rights and obligations

Rights:

  • Box 1 deduction.
  • Transfer to reserve room.
  • Deferral until retirement age.
Obligations:
  • Correct tax return.
  • Regular accrual.
  • 20% interest on excess.
Keep pension proof for 7 years. Disputes: District Court of Rijswijk.

Frequently asked questions

Can you carry over the annual room?

No, it expires at year-end; but transferable to reserve room.

Contributed too much?

20% revisionary interest; correct via supplementary return.

With employer pension?

Yes, up to the shortfall. Check overview.

Requesting rights?

Via mijnpensioenoverzicht.nl and provider.

Tips for Rijswijk residents

  • Calculate via belastingdienst.nl/jaarruimte.
  • Combine with reserve room.
  • Choose annuity/bank savings/JAAP.
  • Advice? Rijswijk Legal Aid Office or Municipality of Rijswijk for starters.
  • More: Self-employed pension, Annuity.

Maximize your pension with the annual room. Rijswijk residents: start now! Questions on tax law? Call Rijswijk Legal Aid Office.