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Early PER Withdrawals for Home Purchase: Tax Implications

This text discusses the tax implications and rules surrounding early withdrawals from a French retirement savings plan (PER) to fund a home purchase.

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French

France

FranceFinanceRetirementHousingTaxesSavings

MoneyvoxPlacement-Direct.frPrimonialUff

Maxime ChipoyGilles BelloirAlexandre BoutinLouis De Varax

Are there any exceptions to the early withdrawal rules for PERs?: For minors with PERs opened by parents before January 1st, 2024, withdrawal for a primary residence purchase is an option. The lower tax bracket of the child may make this option more favorable.
What are some alternatives to using a PER for financing a home purchase?: Alternatives to using a PER for home financing include short-term savings accounts, company savings plans (PEE), and life insurance policies (especially those over eight years old). These offer more flexibility and avoid potential tax penalties.
What is a PER (Plan d'épargne retraite) and how does it typically work?: A PER (Plan d'épargne retraite) is a retirement savings plan in France. Money invested in a PER is typically locked until retirement, but there are exceptions for specific life events like buying a primary residence.
What are the tax consequences of early withdrawal from a PER for home purchase?: The tax implications of withdrawing from a PER early are unfavorable. Withdrawals for buying a home are taxed at the individual's marginal income tax rate, plus a flat rate for capital gains, eliminating the initial tax advantages.
Can I withdraw money from my PER early to buy a house, and what are the implications?: While a PER allows for early withdrawal for a primary residence purchase, this is generally discouraged due to significant tax penalties. These penalties can negate the initial tax benefits of the plan and even result in a higher tax burden.

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