Retirement benefit

• Subscriber: Individual who will receive retirement benefits in a lump sum
• It is obligatory to transfer retirement benefits paid out under the retirement pension plan (DB, DC, etc.) to the subscriber’s IRP account (Exception: Retirement after age 55, retirement benefits of KRW 3 mil or less)
• In order to receive retirement benefits, employee needs to open an IRP account before retirement
• Tax deferral: Transferring retirement benefits to an IRP account has the same effect as operating the principal of pre-tax retirement benefits due to deferral of retirement income tax
• IRP - Operation of retirement benefits
  1. 퇴직 예정 근로자 - 개인형IRP 계좌 개설
  2. 사용자 - DB, DC 급여 신청 시 개인형IRP 계좌로 입금 요청
  3. DB, DC사업자 - DB, DC 퇴직급여를 IRP계좌로 이전
  4. IRP가입자 - 적립금운용 또는 계약해지 ＊퇴직소득세 과세이연효과

Individual contributions

• Starting on July 26, 2017, all employees (employees, sole proprietors, etc.) may subscribe to an IRP and provide their own contributions
• Contributions of up to KRW 18 mil per year can be made and tax deduction of up to KRW 9 mil per year including other tax-deduction products (pension savings, additional contributions to DC, etc.)
  More Detail info.

  Pension savings(KRW 0~6 mil) + retirement pension account (Sum of individual contributions to DC, corporate IRP and IRP : KRW 0~9 mil)
  
• IRP - Operation of individual contributions
  1. 개인형IRP 가입자격 - 근로자, 자영업자, 공무원, 교사, 군인, 별정 우체국 직원 등(자격확인서류 필요)
  2. IRP 사업자 - 가입 자격 확인하여 개인형IRP 신규
  3. IRP 가입자 - 연간 18,000만원 한도 입금
     • 연금 수령시 - 연금소득세 징구
     • 일시금 해지시 - (세액공제받은 원금 ＋ 운용수익) ＊기타소득세 징구