Korea Investment & Securities Provides Pension Tax Credit Savings Service on MTS

Korea Investment & Securities announced on the 4th that it will provide a pension tax credit saving service through its mobile trading system (MTS) app, ‘Korea Investment’.

This service clearly organizes and provides the tax credit amounts and remaining contribution limits of individual retirement pension (IRP) and pension savings accounts, showing the tax-saving status through pension accounts. When linked with the MyData service, which gathers all financial asset information in one place, users can also check the tax-saving status of pension accounts subscribed to at other financial companies at a glance. To maximize tax-saving effects, if additional contributions are desired, users can easily make deposits without navigating through separate menus.

As the year-end tax settlement season approaches, there is growing interest in the tax credit benefits using pension accounts. Depending on the total salary, users can receive a refund of 13.2% or 16.5% of the contribution amount, and taxes on the earnings from the contributions are deferred until pension receipt after age 55. However, it should be noted that if the account is terminated early before age 55, a 16.5% miscellaneous income tax will be imposed on the amount of tax credit received.

Kim Gwansik, Head of the Digital Innovation Division, said, "We prepared this service so that users can easily establish a tax-saving plan without complicated calculations such as contribution limits and tax credit rates," adding, "As interest in tax strategies using pension accounts grows, we plan to introduce various services to enhance related conveniences in the future."