How are Swiss 3a contributions limited?

I know that there is a limit on the tax deduction which you can claim for contributions to 3a retirement savings. But other than the tax deduction limit, is there any real limit on how much I can deposit into 3a accounts or pay into 3a life insurance policies?

If I have several 3a accounts at different banks or a 3a bank account and a 3a life insurance policy, could I pay the maximum contribution allowed to each? I read that contributions are limited to the maximum but how is this tracked? Do banks inform eachother and insurance companies about contributions paid? Is there a cross-service provider tracking system which records annual contributions? What would stop me from saving much more than the maximum by using more than one 3a solution?

Hi there,

When you contribute money to a 3a account or whole life insurance policy within a given tax year, you receive a statement from your bank or insurance provider stating the exact amount contributed. In the case of life insurance this applies to the portion of premiums which builds cash value. Copies of these statements must be included in your tax returns.

In this way, your tax office can calculate exactly how much was contributed to 3a savings. If you contributed more than the legal annual maximum, the tax ofice will provide you with a statement which you must use to withdraw excess contributions from 3a savings solutions.

Contributions in excess of the legal maximum for 3a contributions will be classified as private savings and taxed at standard tax rates (income tax and wealth tax). This also applies to interest earned.

Best regards from Moneyguru

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