Actinver::Plan218

Special Savings Account (218)

The retirement plan with tax incentive has the objective of promoting saving over the long term with investment strategies that allows for a deferment of taxes allowing the client the possibility to pay these taxes in the year that he wants.

How does it work?

The retirement plan with tax benefit Special Savings Account (218) can be applied together with the Personal Retirement Plan (176).
The maximum amount by which the taxable base can be reduced for individuals is $152,000 in the exercise (annualized year on year for inflation).
The investment in investment funds cannot be sold for retirement, neither can it be transferred or repurchased by third parties before the forced term of 5 years, except in the case of death of the holder.
The amounts that can be invested in investment funds plus the interest generated will be accumulated in the annual declaration of the exercise in which it is received or retained. This tax deferment will allow for lower effective tax rates in the future.
The area of plan coordination will deliver at the end of the year the proof of net contributions.

Comparison between Article 176, fraction V and Article 218

Article	Concept	Amount	Retention	Acummulated Return	Anticipated Withdrawal	Pension able Taxes
176-V	Personal deduction for the contributions to the personal retirement plan.	Up to 10% of the accumulated income in any given year without exceeding 5 times the minimum salary. The current applicable amount in Mexico City is MXP $92,290.25 for example.	Exempt from tax retention over the amount that interest is calculated.	Real interest is accumulated only if it is withdrawn at the age of 65.	To avoid accumulation it must be withdrawn at the age of 65.	SAT Authorization.. Contributions and the real interests on a 10th part basis (10 years) will be added to the rest of the personal pension revenues and an exception over 9 times the minimum salary will be applied; whatever exceeds will be considered as accumulated revenue.
218	Tax benefit over a special retirement personal account where investments funds are acquired.	Deductible up to MXP $152,000	Retention is effective over invested amount and interest at the time of withdrawal.	Capital and returns are accumulated when withdrawals are made.	It can be withdrawn only after 5 years invested.	Amount invested in funds is considered accumulated in the exercise that is retained.

Use the Special Savings Account (218) Calculator.