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Income Tax Act 2007

General collection rules - Withholding tax on retirement scheme contributions

RH 3: Retirement savings schemes

You could also call this:

“Rules for accessing money in retirement savings schemes”

You can be part of a retirement savings scheme if a special investment company holds money you’ve put into a retirement scheme. This company must have rules about how they give out your money, and these rules need to be fair and approved by the Commissioner.

The rules say you can’t usually take your money out before you reach the retirement age set by the scheme. But there are some times when you can take money out early:

You can use the money to pay back a student loan under the Student Loan Scheme Act 2011.

You can use it to pay for costs related to university or other higher education.

If you don’t own a home, you can use the money to buy one.

You can take money out in the same ways you could if your scheme was a KiwiSaver scheme.

You might also be able to take money out in other situations that are written in the rules and have been approved.

The company running your retirement savings scheme can ask you for information to make sure you’re allowed to take money out when you ask to.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1690715.

Topics:
Money and consumer rights > Savings and retirement
Education and learning > Higher education
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RH 2: Retirement scheme contributions, or

“Money added to your retirement savings scheme by someone else”

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RH 4: Retirement scheme contributors, or

“Who can contribute to your retirement scheme”

Part R General collection rules
Withholding tax on retirement scheme contributions

RH 3Retirement savings schemes

  1. An entity is a retirement savings scheme for a person if the entity—

  2. is a portfolio investment entity; and
    1. holds funds from a retirement scheme contribution for the person; and
      1. has rules (the distribution rules) governing the distribution by the entity of funds in which the person has an interest that—
        1. are approved by the Commissioner as fair and reasonable; and
          1. meet the requirements of subsection (2).

          2. The rules must provide that—

          3. the availability of a distribution to the person is restricted before the person reaches an age of retirement set out in the rules:
            1. the person is not permitted to make a withdrawal before the age of retirement other than a withdrawal—
              1. to repay a student loan under the Student Loan Scheme Act 2011:
                1. to pay fees and expenses related to tertiary education:
                  1. to buy a home if the person does not own one:
                    1. that the person would be permitted to make if the scheme were a KiwiSaver scheme:
                      1. in circumstances set out in the distribution rules that have been approved under subsection (1)(c)(i):
                      2. the entity may require the person to provide information to ensure that the requirements relating to a withdrawal are met.

                        Compare
                        Notes
                        • Section RH 3: inserted, on , by section 545 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                        • Section RH 3(2)(b)(i): amended, on , by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
                        • Section RH 3(2)(b)(iv): amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).