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Individual Retirement Account

MILLENNIUM IRA (INDIVIDUAL RETIREMENT ACCOUNT) is a unique scheme enabling Clients to build their capital in time with a high rate of return and offering additional tax benefits, such as exemption from capital gains tax  and inheritance tax.

Individual Retirement Accounts are the only legal way in Poland to increase capital without the need to pay the 19% capital gains tax, provided two statutory requirements are met: the Client must make payments to IRA under a predefined annual limit in any 5 years before they reach the age of 60.

The higher the amount of funds accumulated on IRA, the higher the amount of savings at your disposal in the future, and the higher the potential tax exemption. Therefore, the Client should plan to use the highest possible amount of the limit provided for a given year by the legislator. In 2016, the annual limit of payments was PLN 12,165. This amount may be paid as a one-off payment, in instalments or in the form of regular monthly payments.

Under Millennium IRA, funds may be invested in one or more subfunds forming part of Millennium OIF: Deposit Subfund, Debt Instruments Subfund, Stable Growth Subfund, Economic Trend Subfund, Equity Subfund, or Dynamic Subfund.

Clients may change the savings structure, allocation of payments and funds accumulated on IRA at any time, which allows for adjusting the method of investment to market developments or to age.

Each Client may also withdraw the funds accumulated on IRA at any time without additional charges.

IRA with Millennium TFI offers:

 

Capital increase in time

Portfolio value simulation based on the assumption that today’s 30-year-old Client will be systematically paying PLN 200 a month to IRA for the next 37 years, and that the funds they selected will have a 10% annual rate of return – by the time they reach retirement age, the Client will have accumulated PLN 931,965. The amount of payments alone will equal PLN 88,800. The remaining capital will be return on investment and, what is important, it will not be subject to the 19% tax on withdrawal*.

The amount saved on tax will reach PLN 160 201*

Annual payments for 5 years

Portfolio value simulation based on the assumption that today’s 30-year-old Client will be systematically paying PLN 10,000 a year to IRA for the next 5 years only, and that the funds they selected will have a 6% annual rate of return – by the time they turn 60 years old, the Client will have accumulated PLN 241,937. The amount of payments alone will equal PLN 50,000. The remaining capital will be return on investment and, what is important, it will not be subject to the 19% tax on withdrawal*.

The amount saved on tax will reach PLN 41,218*

* The presented results are a simulation based on specific parameters. The assumed rate of return should be considered an example and it should not in any case be perceived as a guarantee of the future results. It reflects neither the past results nor the simulated future results of the fund. All charts and diagrams presented on this website should only serve as an illustration and they do not constitute investment advice or forecast. They are not a business offer and they should not be considered a basis for any liabilities of any party. The funds do not guarantee that the investment objective or a specific investment result will be achieved. ”Expected return” is neither a forecast nor a guarantee.

 

 
 

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