How to properly manage the early exit of a PER or a PEE?

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I am considering releasing part of my employees’ savings early, should I take any precautions?

The individual retirement savings plan (PERin) and the employee savings plan (PEE) are locked for several years: the first generally until age 64, the second five years from the date of each payment. However, there are cases of early release (life accident, home purchase, etc.). It is important to understand the modalities to manage them as best as possible.

In the event of an exceptional departure, you normally have a period of time to make your withdrawal, from the event justifying release – generally six months for a PEE (for certain reasons for PEE release, there is no deadline). Even if this period has not passed, you will only be able to make one withdrawal.

Purchase of main residence

It may make more or less sense to reveal your PERin or PEE in advance. Thus, an exit from a PERin to acquire a habitual residence will be subject to taxation, while for a PEE only Social Security contributions will be owed on capital gains.

In the event of a life accident, withdrawals from PERin, like those from PEE, will be exempt from income tax, only social security contributions will be owed on earnings. If part of the capital from this withdrawal is reinvested in a PERin in subsequent years, it will again be deductible from your tax base. The same payment to the PEE will not entail any tax advantage in the year of payment.