DIP
DIP (Long-term Investment Product) is a new form of retirement savings introduced in the Czech Republic from 2024. It allows you to deduct contributions from your tax base (up to CZK 48,000 per year) and also receive employer contributions tax-free.
Unlike a classic pension savings plan (supplementary pension savings or pension insurance), DIP allows you to invest in ETFs with the potential for higher returns. DIP with Fondee offers the same tax benefits but invests in diversified ETF portfolios instead of conservative pension funds.
DIP offers: tax deduction of contributions up to CZK 48,000 per year, tax-free employer contributions up to CZK 50,000 per year, and the possibility to invest in ETF portfolios with historically higher returns than classic pension schemes.
You cannot directly transfer investments from a regular Fondee portfolio to DIP. You would need to sell the investments from the regular portfolio and then make a new deposit into DIP.
Yes, it is possible to convert an existing Fondee portfolio to a DIP pension account. You can initiate this process in the client zone.
It is not possible to directly transfer funds from classic pension savings (supplementary pension savings or pension insurance) to Fondee DIP. You would need to terminate your existing pension savings and then invest the released funds in Fondee DIP.
No, it is not possible to transfer state support (state contributions) from classic pension savings to DIP. State contributions are bound to the original pension savings product and cannot be transferred.
Yes, you can have both Fondee DIP and classic pension savings (supplementary pension savings or pension insurance) at the same time. The tax deduction limits apply across all products combined.
To arrange employer contributions, provide your employer with the DIP contract (agreement on long-term investment product management) that you receive from Fondee upon opening a DIP account. Your employer will then set up contributions based on this document.
Your employer can contribute up to CZK 50,000 per year tax-free to all your retirement savings products combined (DIP, supplementary pension savings, pension insurance).
Yes, an employer can contribute to multiple retirement savings products for the same employee, as long as the total does not exceed the tax-free limit of CZK 50,000 per year across all products.
No, Fondee DIP does not include a state contribution (unlike supplementary pension savings). However, it offers a tax deduction of up to CZK 48,000 per year and the possibility of employer contributions.
To claim a tax deduction for DIP contributions, you must be the holder of the DIP account and make contributions during the tax year. Contributions can be deducted up to CZK 48,000 per year in total across all retirement savings products.
To claim tax benefits across multiple products, you need to sum up all your contributions to all retirement savings products. The total deductible amount cannot exceed CZK 48,000 per year. Each provider will issue you with a confirmation of paid contributions for your tax return.
In the event of the account holder's death, the assets in the DIP account become part of the estate and are subject to inheritance proceedings. Unlike classic pension savings, DIP does not offer the option of designating a specific beneficiary outside of inheritance proceedings.
Yes, the minimum deposit for the DIP pension account is also CZK 500.
Yes, you can change the investment profile (risk level) of your DIP portfolio at any time in the client zone, provided the new profile matches your investor questionnaire results.