I checked the wiki this time (phew) and didn't find much in there about the retirement bonus tax break, let alone how it works when someone has both a retirement bonus and an iDeCo or similar account.
I do not have a good grasp of the rules on this, so would appreciate a quick primer or a link to something that explains it (preferably with examples).
I was pleasantly surprised to find recently that even for iDeCo accounts with very large balances (my wife's is likely to get to 50m or so before she cashes it out), the tax is quite a lot less than the 20.315% that would be due on investments in a taxable account, and that is without taking account of the income tax savings over the years. Truly a fantastic retirement account.
But how is it taxed if you also have a retirement bonus? In a worst case scenario, is the entire iDeCo balance taxable as one off income?
by sendaiben