IRP to Pension Savings Transfer, How to Calculate Fees and Tax in 5 Steps?

There is only one condition!!! First check the balance and holdings of the account you want to transfer.

Retail investor:

"Will I pay a lot of tax if I move this?"

It depends on the transfer method and timing. Let us calculate step by step.

The answer is 5 steps, here are the numbers first

1) Check balance and detailed holdings

2) Add up fees

3) Calculate tax impact (deduction and taxation)

4) Proceed with transfer application process

5) If it still does not work, contact customer service

(Each step below explains calculation methods and precautions)

Have you checked what money you have?

Account balance: check the balance by account and the quantity held for each product.

You must know exactly the holdings such as cash, funds, and ETFs subject to transfer to calculate fees and taxes.

IRP → a pension account for severance pay and individual contributions. Pension savings → an account focused on personal pension tax benefits.

How do you calculate fees?

Fees: transfer fee + fund redemption fee (if any)

Transfer fees vary by securities firm. When redeeming funds, check for redemption fees or redemption restrictions by the asset manager.

What tax effects should you look at?

Taxation simply from the transfer is rare. However, compare whether pension savings tax deductions apply and the tax benefit conditions of the existing IRP.

Tax deduction: a benefit that reduces tax on contributions.

Note: confirm the latest deduction limits and tax rates with your securities firm or the National Tax Service.

How does the procedure actually proceed?

→ 1. Issue a 'transfer application' from the current IRP account or enter the online menu

→ 2. Confirm fees and redemption conditions, then specify the transfer date

→ 3. Submit the transfer application and confirm completion notice

If it still does not work: ask the securities firm customer center for the 'reason for transfer failure'.

So, what should you start with?

→ 1. Take a capture of current balance and product holdings

→ 2. Check the securities firm transfer fee and fund redemption fee table

→ 3. Check whether pension savings tax deduction is applicable

Please use these as reference only!

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※ Investment decisions and responsibility rest with the investor.
※ Figures are as of the time of writing and may change.
※ This article is for information purposes and is not investment solicitation.