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regular payments are not required; payments can be reduced, suspended and the accrued funds can be withdrawn, in whole or in part, at any time.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
13 sub-funds with a diversified reward and risk potential.
IKE overview
IKE is available
to any person who is 16 years old or older.
Underage persons can make payments
to the account only when they receive remuneration for work.
Minimum initial payment
PLN 500.
Minimum subsequent payments
PLN 100.
Statutory maximum annual limit:
the limit in force in 2021 is: PLN 15,777.
13 available sub-funds of Santander FIO
denominated only in PLN.
A possibility
invest in a number of sub-funds.
Prior to opening an IKE
an agreement must be signed which is at the same a purchase order for participation units and the purchase price must be paid.
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.
- What are the minimum payments to IKE?
The initial payment to the sub-register is PLN 500 and the subsequent ones are PLN 100.
- What is the limit of payments to IKE in 2021?
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 2021, the maximum amount of payments to IKE is 15 777.00.
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 are the fees charged in relation to 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 2021 is PLN 15,777.
Note: remember that this is only a simulation and the actual rates of return can be different.
The net asset value of certain sub-funds may be exposed to considerable volatility due to the composition of the investment portfolio. Some sub-funds can invest more than 35% of their assets in securities issued, guaranteed or underwritten by the State Treasury or the National Bank of Poland.
The sub-funds’ financial data and description of the risk factors can be found in the prospectus of Santander FIO available at Santander.pl/TFI and from the Fund's Distributors. It is recommended to review them before making an investment.
The sub-funds cannot guarantee achievement of the defined investment objective or of the expected return on investment. The Participant should take into consideration the possibility of losing at least some of the invested capital.