iDeCo Calculator for Foreign Residents

How iDeCo saves tax

Your contributions are fully deductible, so the saving is your contribution times your income tax rate plus 10% resident tax. For example, on ¥300,000 a month, contributing ¥23,000 a month saves about ¥41,700 a year. Gains inside the account are also not taxed while invested.

From December 2026, employees can contribute up to ¥62,000 a month (minus any employer contribution to a company pension), up from ¥23,000 or ¥20,000. The minimum is ¥5,000, in steps of ¥1,000.

The big risk for foreign residents: leaving Japan

You normally cannot take money out of iDeCo until age 60. Leaving Japan is not an exception in itself. A foreign national who has left Japan can get a lump-sum withdrawal (dattai ichijikin) only if all of these apply:

• You are under 60 and can no longer join iDeCo (foreign nationals living abroad cannot).
• You are not in a company DC plan and are not entitled to a DC disability benefit.
• You contributed for 5 years or less in total, or your balance is ¥250,000 or less.
• You apply within 2 years of losing eligibility.

If you contributed for more than 5 years and have more than ¥250,000, the money stays in Japan, invested and paying account fees, until you claim it from age 60 or later. So iDeCo suits you best if you plan to stay long-term or retire in Japan. If you are not sure, NISA is more flexible: you can sell at any time.

Who can join

• Anyone enrolled in Japan's public pension, including employees, the self-employed and dependent spouses, regardless of nationality.
• You open the account through a bank or broker of your choice. Fees differ by provider: the calculator uses ¥186 a month (the minimum, with a provider that charges no fee of its own) plus ¥2,829 when you join.

Assumptions

• You are an employee with salary income only and no dependents. Tax is calculated with 2026 rules and your prefecture's health insurance rate.
• The tax saving assumes your income stays the same each year. Tax when you finally receive the money is not included.
• The balance compounds monthly at the return you enter, before fees.