What are the taxes if you withdraw funds from your child’s PER?

Question to an expert

If I withdraw the money from my daughter’s retirement savings plan, how will it be taxed?

Since 1^er January 2024, minors cannot subscribe to an individual retirement savings plan (PERin) nor make payments into an existing PERin. The legislator considered that this envelope, which allowed parents to deduct from their income the sums paid into the plan for their minor children, was a gift for the parents, but that it was confiscatory for the children.

In fact, the latter find themselves upon leaving, except in the event of a life accident, having to pay tax on the sums paid and then deducted by their parents.

How can we recover the funds that were paid until the end of 2023 into children’s retirement savings plans? The law has created a new case of early exit: the minor will be able to receive their funds before turning 18. Income tax will be due on the sums invested and the flat-rate withholding tax of 30% – or, optionally, the classic income tax scale – will apply to capital gains.

The minor being attached to the tax household of his parents, it is the latter who will be liable for the tax. Please note, if the redemption is not carried out before the plan holder turns 18, the funds will be blocked again until their legal retirement age – always excluding cases of classic early release.