Free tools / IKE and IKZE calculator
IKE and IKZE calculator: what you really save on tax
Compare a standard account, IKE and IKZE: capital gains tax saved, income tax relief and the take-home amount after years of saving.
The IKZE relief is treated as the amount of tax recovered, with no assumption that it is reinvested. The IKZE payout is taxed at a flat rate of 10% on the full amount.
IKE and IKZE are Polish retirement accounts where the benefit is purely a tax one, and you invest in the same instruments as in a standard account. The difference lies in when, and whether at all, you pay tax.
The calculator sets three versions of the same contribution side by side: a standard account with capital gains tax on withdrawal, an IKE without that tax, and an IKZE with immediate income tax relief and a flat-rate tax on withdrawal.
IKE: no capital gains tax on the way out
With an IKE you pay in money that has already been taxed, but on withdrawal, once you reach the qualifying age and have contributed in the required number of years, you pay no 19 percent on your gains. The longer the horizon and the larger the gain, the bigger the benefit in real terms.
You can withdraw the whole balance early, but capital gains tax is then due on the profit, so you lose the entire benefit while keeping your money. The account does not lock up your capital permanently, it only makes the tax break conditional.
IKZE: relief today, tax later
You deduct your IKZE contribution from your taxable base in your annual tax return, so you get the tax back straight away, at your own rate. On withdrawal after reaching the qualifying age, a flat-rate tax of 10 percent applies to the entire payout, not just to the gain.
That is why IKZE pays off most for people taxed at a higher rate: the gap between the rate at which they claim the relief and the 10 percent due on withdrawal is then at its widest.
Contribution limits change every year
The annual contribution limits for IKE and IKZE are set each year and rise in line with the average wage, and the IKZE limit is higher for the self-employed. For that reason the calculator leaves the contribution as a field for you to fill in, rather than hard-coding a number that will be wrong a year from now.
The current amounts for a given year are published by the ministry in an official announcement, and every institution offering these accounts publishes them as well. Check the limit before you pay in, because any excess above it has to be returned.
Frequently asked questions
IKE or IKZE: which should you choose?
IKZE gives you the benefit immediately, in the form of a lower income tax bill, and is usually more attractive the higher your tax rate. IKE gives you the benefit at the end, exempting your gains from capital gains tax entirely, so it comes out better over a very long horizon and with a high expected rate of return. You can run both accounts side by side, and many investors do exactly that.
Can you withdraw money from IKE and IKZE early?
Yes, the capital is not locked up. An early withdrawal from IKE means paying capital gains tax on the profit, while an early withdrawal from IKZE is added to your income and taxed under the tax scale, which usually wipes out the relief you claimed earlier.
Can you buy stocks and ETFs in an IKE or IKZE?
Yes, provided the account is held as a brokerage account. The instruments available depend on what the individual broker offers, and differences in account fees and commissions can matter a great deal when you contribute regularly.
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