Endorsed by the employer on behalf of its employees, this contract is used to capitalize for his retirement. Explanations.

An “article 83” is a life insurance contract collective endorsed by the employer on behalf of its employees, or a part of them. The qualifier “83” refers to the article of the general tax Code that governs its taxation. It is called the contract-defined contribution : single contribution rate is set, that the employer is paying for all or part. The level of the pension to the output is not fixed in advance. To improve, the employee may make additional payments at its own initiative.

The capital is guaranteed ?

If savings is placed in a contract pension article 83 in euros, the principal is guaranteed by the insurer as to life insurance in euros. The interest credited each year are also permanently acquired. On the other hand, in the context of multi-contract, only the savings invested on the fund in euros is guaranteed.

The money is available ?

No. It will be paid back to the pension, and only into a life annuity. The latter may be reversible for the benefit of the spouse. During the phase-in of savings, the five situations that allow you to unlock its capital : the death of the spouse or partner partner, the severe disability, the end of unemployment benefits or judicial winding-up for a nonsalarié and over-indebtedness. Finally, if the employee dies before the commissioning of the annuity payments, the savings account is transferred to(x) the recipient(s) designated(s) according to the taxation of life insurance.

How much does it yield ?

Difficult to assess the profitability of a product retirement savings to output a compulsory annuity. It will evaluate only to the payment of the first annuity.

Make additional payments ! The 2010 pension reform has introduced the possibility for employees to make additional contributions on an article 83. And this without the need to go through a retirement savings plan of the company, as was previously the rule. These contributions will be tax-deductible from your total income under the same conditions as the payments made in the framework of the popular retirement savings plan.

What is the tax rule ?

The employee may deduct from his taxes to his mandatory contributions in the limit of a ceiling of 8 % of his gross annual income and eight times the annual ceiling of the social Security (Pass), or a maximum of 25 106 euros in 2017, this amount incorporates the payments by the employer. Moreover, the contributions of the enterprise to minimise the overall package of tax deduction for retirement. At the output, after abatement of 10% and to social contributions at the rate of 7.1 %, plus 1 % contribution disease, and 0.3% of additional contribution of solidarity for autonomy. An exemption from wealth tax is granted under certain conditions.

Where can you purchase ?

In his company. Note : this type of product can be put in place unilaterally by the employer if it pays the entire dues.

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Our advice 2017

An investment financed at least partially by the employer, we appreciate it. Even if the side “tunnel” of the product up to the pension we don’t like. We prefer the savings plan company, a lot more flexible in its operation.