11:25
Reported

News Brief

  2/24/2014, Adar 24, 5774

Tax-Free Withdrawal of Up to NIS 7K from Pensions OKd


The Knesset's Labor, Welfare and Health Committee approved, Monday, a proposal by Finance Minister Ya'ir Lapid to allow people with up to 7,000 shekels in pension funds accrued as of 2011 to withdraw the funds tax free. The goal is to make pensions more efficient and prevent cross-subsidization among the contributors.

There are nearly three million old accounts with small amounts that are no longer active. They constitute more than 40 percent of the accounts and about two percent of the money. The funds will inform the fund holders of their rights and how to execute the withdrawal toward the end of March.