Rakuten Securities
楽天証券Brokerage (NISA/iDeCo) · Rakuten Securities
- Fees
- Varies
- English
- Partial
A leading low-cost brokerage for NISA and index-fund investing, integrated with Rakuten points and Rakuten Bank.
NISA vs iDeCo: which comes first?
How the two tax-advantaged accounts differ and how to sequence them.
Direct answers
NISA is flexible (withdraw anytime, tax-free growth); iDeCo gives a bigger up-front tax deduction but locks funds until 60 — many use NISA first.
Key points
- NISA: flexible, tax-free growth, withdraw anytime.
- iDeCo: contributions cut taxable income now, locked until 60.
- iDeCo limits depend on your pension category.
- Leaving Japan makes iDeCo’s lock-up a bigger drawback.
The core difference
Both shelter investment growth from tax, but they trade off flexibility against up-front benefit. NISA gives no income-tax deduction but lets you withdraw anytime with tax-free gains. iDeCo deducts your contributions from taxable income now — a real, immediate saving — but locks the money until age 60 and taxes withdrawals under separate (often favorable) rules. iDeCo contribution limits depend on whether you are self-employed, an employee with or without a corporate pension, etc.
How to sequence them
A common approach is to use NISA first for its flexibility, then add iDeCo for the deduction if you are confident you will not need the money before 60 and expect to stay in Japan. If you might leave Japan, iDeCo’s lock-up and cross-border complexity weigh against it. There is no universal answer — match the choice to your time horizon and residency plans.
Who this is for
- Residents deciding how to split contributions
- Long-term savers weighing lock-up
What this is not
- Personalized allocation advice
Important cautions
- iDeCo funds are locked until 60 — do not contribute money you may need sooner.
Related products & services
SBI Securities
SBI証券Brokerage (NISA/iDeCo) · SBI Securities
- Fees
- Varies
- English
- Partial
Japan’s largest online brokerage by accounts, with a very broad low-cost fund lineup and full NISA/iDeCo support.
Frequently asked questions
NISA or iDeCo — which should I use first?
They solve different problems. NISA is flexible: tax-free growth and you can withdraw anytime, making it the usual first choice. iDeCo gives a larger up-front tax break (contributions cut your taxable income) but locks money until age 60 and suits committed retirement saving. Many use NISA first for flexibility, then add iDeCo for the deduction if they are confident they will not need the money before 60. If you may leave Japan, iDeCo’s lock-up is a bigger drawback.
Can foreign residents open a NISA account in Japan?
Generally yes, if you are a tax resident of Japan (with a My Number) and at least 18. NISA is tied to residency, not citizenship, so most foreign residents qualify — with two big cautions: US citizens and green-card holders face US tax complications with Japanese funds, and NISA generally cannot continue after you leave Japan. Confirm eligibility and the current rules on the FSA site and with your chosen brokerage.