How does Individual Retirement Account (IKE) work?
Benefits of IKE in Santander FIO
Exemption from the capital gains tax
after meeting the eligibility criteria including age and regular payments (see below).
Flexible investments
regular payments are not required; payments can be reduced, suspended and the accrued funds can be withdrawn, in whole or in part, at any time.
Financial security for family members
when the IKE owner dies, the accrued funds can be inherited or any persons – also non-related – can be appointed as beneficiaries.
Wide range of sub-funds
9 sub-funds with a diversified reward and risk potential.
Managing the IKE account via internet
the possibility of opening and operating IKE in Santander internet.
Remember that IKE in the Santander FIO fund is an investment product. This means that an investment involves the risks that are typical of mutual funds.
IKE overview
| For whom? | For any person 16 years of age or older (underage persons can make payments to the account only when they receive remuneration for work). |
| Payments | The first payment – min. PLN 100. Subsequent payments – min. PLN 100. |
| Statutory annual limit | The limit in force in 2023 – PLN 20,805. |
| Available sub-funds | 9 sub-funds of Santander FIO denominated only in PLN. A possibility to invest in a number of sub-funds. |
| Signing an agreement | Prior to opening an IKE the agreement must be concluded, which is at the same time an order to purchase units and deposit funds. Managing of IKE may be executed in the branches of Santander Bank Polska and Santander internet. |
| Important | A person can have only one IKE. |
General terms of exemption from the capital gains tax:
1. being 60 years old or being 55 years old and having the right to retire
2. making payments to the account for a minimum period of 5 calendar years or contributing half of the current account balance minimum 5 years before filing the disbursement instruction.
Term mentioned above in point 2 is not applied to the funds transferred from retirement program to IKE.
Terms of exemption from the capital gains tax for persons born between 1 January 1946 and 31 December, 1948:
making payments to the account for a minimum period of 4 calendar years or contributing half of the current account balance minimum 4 years before filing the disbursement instruction.
Terms of exemption from the capital gains tax for persons born before 31 December, 1945
making payments to the account for a minimum period of 3 calendar years or contributing half of the current account balance minimum 3 years before filing the disbursement instruction.
FAQ
- Which Santander FIO sub-funds are available under the Individual Pension Account (IKE) plan?
IKE is available in all Santander FIO sub-funds. The list of sub-funds within which IKE is available is given in the Regulations of maintenance of IKE published on the website Santander.pl/TFI.
The agreement on the maintenance of IKE may be executed in the branches of Santander Bank Polska and Santander internet.
- What are the minimum payments to IKE?
The initial payment to the sub-register is PLN 100 and the subsequent ones are PLN 100 as well.
- What is the limit of payments to IKE in 2023?
The maximum amount of payments to IKE in a given calendar month cannot exceed the amount equal to the triple value of the forecasted average monthly wages in the domestic economy in the respective year, as set forth in the budget act or the provisory budget act.
If the Saver is a minor person, the payments made to IKE cannot exceed the value of his/her income generated in a given year under an employment contract.
In 2023, the maximum amount of payments to IKE is 20 805.00.
When the amount of money in a given calendar year exceeds the limit, the Fund will promptly notify the Saver about it and return excess funds.
- What fees are in IKE?
The following fees are payable:
- exit fee – in the amount of 1% upon Refund or Transfer Disbursement up to and including 6 months. In the case of participation units recorded on the sub-register for more than 6 months, the exit fee is not charged.
- conversion fee – charged upon conversion on the participation units recorded in the register -up to and including one month. In the case of participation units recorded in the sub-register for more than 1 month, conversion fee is not charged.
- Is it possible to file a conversion order in IKE?
Yes. Conversion of participation units between IKE sub-registers is possible.
IKE Calculator
Check how much you can earn with IKE (Individual Pension Account)
The calculator provides a simulation of the value of accrued capital in the case of regular monthly or annual contributions.
The calculator takes into account the amount of monthly or annual payments, the investment duration period and the annual rate of return on the investment expected by the investor. The calculator takes no account of potential fees for participation in Santander FIO Fund or the capital gains tax. The maximum annual limit for payments to IKE in 2023 is PLN 20,805.
Note: remember that this is only a simulation and the actual rates of return can be different.
Form validation errors
This document is presented for marketing purposes and does not constitute an agreement or an information document required by law.
It should not be relied upon as the sole basis for making investment decisions.
The net asset value of some sub-funds of the Santander Funds is highly volatile due to the composition of the investment portfolio. Some sub-funds may invest more than 35% of their assets in securities issued, guaranteed or underwritten by the State Treasury or the National Bank of Poland.
The rewards of investing in shares are also accompanied by risks. A description of the risk factors, financial data and information about fees and charges can be found in the prospectuses, key information documents (KIDs) and schedules of fees and charges available in Polish at Santander.pl/TFI/documents and at Santander fund distributors. For a summary of investors' rights, see the prospectus (Chapter III, sec. 4).
The Funds do not guarantee the achievement of a stated investment objective or a specific investment performance and future returns are subject to taxation, which depends on the personal situation of each investor and which may change over time. Before making an investment decision, the participant should consider the fees associated with the sub-fund and take into account the possible taxation of the investment return. The participant must also take into account the possibility of losing at least part of the invested funds.
When investing in mutual funds, the participant purchases the units of those funds and not the underlying assets that the fund itself invests in.