As you might know, foreigners who finish working in Japan and return to their home country can claim a lump-sum withdrawal payment from Japan’s pension system. But, if you were paying into a company pension scheme, you might also be eligible for a lump-sum payout from the defined contribution pension plan (also known as Japan’s 401k). This is separate from the regular pension, and you’ll need to follow a different application process.
Note: This guide is for those who worked at a company with a corporate pension scheme and contributed to it in addition to the public pension.
The process can be complicated, but we can help you with your application. Feel free to reach out if you’re interested.
Contents
1.Eligibility for Lump-Sum Payments from Japan’s 401k
Eligibility Criteria
To claim a lump-sum payment from Japan’s 401k, there are some conditions you need to meet. You must no longer live in Japan, and you shouldn’t be enrolled in the Japanese social insurance system. On top of this, your eligibility depends on the amount you’ve accumulated and the length of time you’ve contributed. You also need to apply within six months of leaving your job in Japan.
Documents Needed
To apply for the lump-sum withdrawal payment, you’ll need to gather the following documents:
- Lump-sum Withdrawal Claim Form
- Proof of your current address
- Passport and residence card
- A document proving you’re not enrolled in Japan’s social insurance
- Any other required documents, like membership certificates or balance sheets
The claim form can be obtained from the plan administrator. Your ID could be a driver’s license or passport. The proof that you’re not enrolled in social insurance can be issued by the Japanese social insurance office. Other required documents may vary depending on the administrator.
2.Process and Things to Watch Out For
Here’s a simple breakdown of the steps:
- Contact the plan administrator to request a lump-sum withdrawal.
- Receive the necessary forms from them.
- Fill in the forms and submit them along with the required documents.
- The administrator will process the documents and issue the lump-sum payment.
You can apply for the payment on the plan administrator’s website or by phone. They are the company that manages your pension contributions.
Processing Time
The time it takes to process the lump-sum withdrawal payment depends on the plan administrator. Generally, it takes around four months, but this can vary depending on their workload and how quickly you submit the required documents.
Common Issues and How to Solve Them
Here are some common problems people face:
- Missing documents
- Errors in the submitted paperwork
- Difficulty contacting the plan administrator
If you’re missing any documents, reach out to the administrator to find out what’s needed. If there are errors in your submission, contact them to correct them. And if you’re having trouble reaching them, try checking their website or calling their support number.
*We can assist with these issues.
3.Summary
To receive a lump-sum payment from Japan’s 401k, you must meet certain conditions, like not living in Japan or being enrolled in its social insurance. You’ll need to contact the plan administrator and submit the required documents to apply. Since the process can be complicated, we’re here to help—just reach out!
