Key Facts
• New NISA offers an annual investment limit of ¥3.6 million.
• Old NISA accounts have a non-taxable period of up to 5 years.
• For unused New NISA limits, transfer assets from Old NISA to avoid taxation.
• General NISA: Sell assets by the end of the 5th year, including the purchase year.
• Accumulated NISA: Non-taxable for 20 years from the purchase year.
• Junior NISA: Non-taxable until the account holder turns 18.
• Post-2024, Junior NISA allows full tax-free withdrawals regardless of age.
• Missed non-taxable periods lead to two options: keep in taxable accounts or reinvest in New NISA.
• Growth Investment and Accumulated Investment differ in product eligibility and annual limits.
• Individual stocks require diversification across at least 5 sectors for risk management.
Summary
The transition from Old NISA to New NISA requires strategic planning to maximize tax benefits. Old NISA accounts offer a limited non-taxable period, necessitating timely action to avoid taxation. Investors can either retain assets in Old NISA until the non-taxable period ends or transfer them to New NISA if annual limits allow. General NISA assets must be sold within five years, while Accumulated NISA offers a 20-year non-taxable period. Junior NISA accounts, now more flexible post-2024, allow full tax-free withdrawals regardless of age. For missed deadlines, investors face two choices: keep assets in taxable accounts or reinvest in New NISA. Growth Investment and Accumulated Investment differ in product scope, with the former offering broader options like individual stocks. However, individual stock investments require careful diversification to mitigate risks. Experts recommend proactive management to ensure long-term financial security.
