How to use Wohnriester

I will no longer contribute to the Riester contract, that is already decided; there is currently a sum of about €4000, most of which are subsidies.

If I take out financing, it will be without Riester, but the LBS advisor says I can transfer or refinance the money that is in the Riester account, or whatever it is called, meaning transfer the money from Riester to the building savings contract.

I know I signed immediately without understanding it! Even after reading a lot, I still haven’t understood everything, but I have understood the principle and the pros and cons.

One question: what does the "k" after numbers always mean, e.g., 30k?

And exactly the last point is usually nonsense, because you have already paid a generous "commission" for the old contract and again for the new one. Of course, you can use the money for the house. Completely free and cheap, by having it paid out to you and using it for repayment. Then the housing promotion account also comes into play, but you do not need a new building savings contract for that.

If I withdraw the money from the Riester contract, is that even possible without having made big losses? As I said, I mostly received money from the government and only paid in €60.

I think I need to change my bank.
Until now, I have always had a home savings contract paid out every 7 years, and they made a new one for me.

For the second time already, the contract was paid out after 7 years? If I had let it run, it would actually have been better and I would have a large sum in the home savings contract.

30k = 30,000 :)

Cobra, to save on taking out a loan, you are allowed to use your existing Riester with the 4,000 euros for the construction/purchase of a self-occupied house. Even now, immediately. The process: At the Riester grant office of the Federal Pension Insurance, there is a form to apply. You must also submit the construction contract/purchase contract or similar with the application. The grant office then approves the Riester withdrawal, in your case the 4,000, the contract is then void. (If you want to continue it, you must leave 3,000 in it). The Riester provider pays you the 4,000. Tax-free without deduction. But upon retirement, you must retroactively tax the withdrawn 4,000 plus 2% p.a. on top. That is how it is. When the house is finished and you are living in it, send the grant office a copy of the completion notice from the building authority and a copy of the registration certificate to make clear: owner-occupied. Riester does not promote rental apartment construction! Karsten

Super explained.

So, if I have €4000, I have to pay 2% tax, which is €80, then the matter is settled, right?

So do I always have to pay 2% tax on the amount paid out?

Can these taxes also be paid before reaching retirement?