Yes, it’s possible. In the 3rd pillar there is no blocking period as is known when buying into the pension fund. It is therefore possible to pay into pillar 3a in the same year in which you make a withdrawal, regardless of whether you pay first and then draw or vice versa.
Why is there no blocking period in the 3rd pillar?
The reason why there is no blocking period is the following: In the 2nd pillar (PF), you can close pension gaps from previous years with a purchase. To prevent this possibility from being abused by withdrawing the money again shortly after a purchase, policymakers have imposed a three-year blocking period. No withdrawals can be made for three years after a purchase, otherwise the tax deduction that you could claim with the purchase will be offset again retroactively (after-tax procedure).
It’s different in the third pillar. In the 3rd pillar it is not possible to make up for missing contribution years. There is a parliamentary initiative that demands exactly that. However, the prospects of the initiative succeeding are low. Since it is still not possible to make subsequent purchases, tax trading (high tax savings on deposits and reduced tax on payouts) is not possible on a large scale. There is therefore no need for a blocking period.
Deposit also possible in the year of retirement
If you want to pay in the year in which you retire, you can do so up to the maximum amount of the 3rd pillar. However, you are required to pay in before your 64th or 65th birthday. This is because you have to withdraw your saved 3a credit balance by then at the latest. After that date, the pension fund may no longer accept any payments from you.
Exception: If you remain employed beyond the retirement age, you can postpone the payment of benefits for a maximum of five years beyond the normal retirement age. This also means that you can continue to make payments.
written on 07.05.2020