Many employers offer their employees capital-forming benefits. If you run out of money during the savings phase, you should not terminate the special contracts. There are alternatives too.
Usually so-called capital accumulation benefits For seven years: Your employer pays the extra money for six years, for example into a home loan and savings contract or fund savings plan – the last year is then a year of rest.
Then you will receive the paid amount including interest transferred to your account. But what if you are short of money – and want to terminate a VL contract? Is that possible? And what losses do you have to expect?
t-online.de answers the most important questions about the payment of capital-building benefits.
Can I terminate my VL contract?
That’s fine. To do this, you must cancel the investment (or the corresponding account) and notify your employer that he should not pay any further capital-building benefits.
However, terminating the VL contract is often not recommended – especially not if you are entitled to the so-called in addition to money from the employer Employee savings allowance to have. The state only pays you this at the end of the contract period. If you cancel in advance, you will receive this reward so not for perseverance.
However, there are exceptions here as well. In the following cases, you can terminate your capital formation contract without losing the employee savings allowance.
- wedding: If the contract has been in place for at least two years and you get married.
- unemployment: If you have been unemployed for more than a year.
- Disability: If you are at least 95 percent incapable of work.
- independence: If you become self-employed, you can terminate the VL contract without losing the employee savings allowance.
Note: Conversely, if you are not entitled to the state employee savings allowance anyway, you can terminate a VL contract within the seven years, usually without losses.
What alternative to termination do I have?
Instead of terminating your VL contract, you can simply make it exempt from contributions and wait until the deadline has expired. Of the advantage: You no longer pay in money, but at the end of the contract you receive your employee savings allowance. This is usually more worthwhile than terminating the contract (see above).
Can I also change my VL contract?
No, that doesn’t usually work. You can usually only adjust your savings amount.
But what you can do: Change your VL contract. This is usually done once a year. Then let your employer know that the capital-building benefits are to be paid into a new contract.
In this case, the first VL contract is no longer saved – and the capital-forming benefits are included in the new contract. You can have the old VL contract paid out after the blocking period has expired.
What happens to my VL contract if I change employers?
You can usually transfer the capital formation payments to your new employer without any problems. This works even if your new employer doesn’t pay you any capital formation benefits.
In this case, you simply continue to pay the contributions out of pocket. This is particularly worthwhile if your income is below certain limits – and you are entitled to them Employee savings allowance to have.
Do I have to have the VL paid out after seven years?
No. You don’t have to have your capital-building benefits paid out right away. You can dispose of the money freely – you can transfer a VL fund savings plan to another depot and leave something there.
This makes particular sense if, for example, you have paid into a fund, but the prices are currently not going well. Then you should wait with the withdrawal if possible.
Do I have to pay taxes on capital-building benefits?
Yes. On the one hand, you pay taxes on the contributions – after all, these are benefits that you receive from your employer or that he pays for you. It is added to your gross wage and taxed on the conventional wage tax.
On the other hand, you have to pay taxes on the income generated – as is usual with investments. Therefore, you should set up a so-called exemption order. Then the Saver lump sum, i.e. the tax exemption, is used directly.