Dissolving Wohnriester as easily as possible?

Interest-bearing at 2% p.a. and taxed upon retirement is the money you withdraw from the Riester contract before retirement to pay for your house. Read carefully what I wrote above. Riester pensions are taxable income. If someone takes equity for the house from the Riester contract instead of a pension, this must also be taxed like income. This is done using this WFK at retirement. Karsten

So it would actually only make sense if I plan to use the [Bauspardarlehen], right? If I don't do that, I can just take the money as equity without having to pay taxes on it, instead of putting it into the [Bausparer] now, withdrawing it again after more or less a long time, and having to pay expensive taxes on it. It's totally pointless that I have to pay taxes on my own saved money just because it was in this [Bausparer] for a short time.

Yes, that is the difference: Riester capital is tax-advantaged during the accumulation phase, there are either allowances or tax reductions. (FA checks which is more favorable). However, Riester capital is considered as income when paid out.

Let’s compare that to a fund savings plan. Nothing is favored when paying in; if dividends and distributions exceed the saver’s allowance, taxes are already due. However, in the payout phase, the money flows to you tax-free.

What still makes Riester attractive? The allowances are high—the payable income tax in retirement is often low. For example, someone receiving a 3000 pension per month, which would already be a high pension, has an annual income of 36,000. Now add 1000 per year from Riester, making it 37,000. That is almost tax-free. Approx. 18,000 basic allowance leaves 19,000 to be taxed. Deducting some advertising costs etc., peanuts remain for FA. K.

In our case, therefore, until retirement:

A: €3000. 2% of €3000 is €60. That times 39 years (2017-2056) = €2340 interest
B: €3500, 2% of which is €70, times 37 years (2017-2054) = €2590 interest

And then €5340 or €6090 are taxed, correct or not?

I will definitely call there sometime, but I like to go into such conversations prepared.

Tobibi: For me, it ultimately doesn’t make sense either. You pay taxes on money you saved yourself. I could understand taxes on the subsidies... but taxes on self-saved money? That’s too much for me and I wouldn’t sign for that anymore. In our case, the child has already fallen into the well. Maybe we can still offset the WFK, but I will also get advice on that.

You can offset the WFK. The provider must inform you of the balance. You declare, I will pay it back. The provider transmits the data record after correct receipt of the ZfA, the WFK is dissolved. Only, consider whether that makes sense. Euro 11500 taxes at the then expected pension amount, possibly stretched until the 85th birthday, that’s 18 years from 67, 20 years from 65, you are allowed to stretch until 85@strecken max., that would result in extra taxes on under 600 equity per year. Let it be 60-80 euros extra in taxes in the end. 2054 or 2056 that is the price of two super saver menus at MacDo. For that, you have been given an allowance of 175,- each year. And also to the partner, and possibly child allowance on top. Karsten

Thank you for the explanation. We will take that into consideration.