Afore: this is how you can deduct voluntary contributions from your retirement savings account

A number of personal deductions can be filed during the annual tax return and receive a balance in favor, such as voluntary contributions, that is, those that you pay to your Retirement Fund Administration (Afore), as the Consar recalled for the benefit of workers.

It should be remembered that personal deductions are those expenses that the taxpayer is entitled to decrease from their accumulated income on the annual tax return, which will be made during the month of April.

In this regard, the National Commission of the Retirement Savings System (Consar) called on taxpayers to be aware of the issue and stressed: “If you made voluntary contributions to your Afore account last year, you can deduct them.”

However, in order to access the benefit, additional resources or resources that were entered voluntarily must remain in the account until they reach the age of 65. The only exception in these cases is the invalidity or inability of the holder to work.

How to do it?

*At the time of making the annual return, the interested party must access the “personal deductions” section.

*You must then capture the total amount allocated to savings with the concept “voluntary contributions made to the SAR”.

*In case of a balance in favor, the taxpayer must include the Interbank Clabe, where they will receive the deposit if approved in favor.

It should be remembered that taxpayers will be able to access other personal deductions, in order to obtain remedies in favor, as the case may be.

Some of them are: tuition, health, housing, funeral expenses, among others. However, for this, vouchers or invoices must be submitted.

Regarding the resources of their savings account, the Mexican Association of Retirement Fund Managers (Amafore) recalled that the responsibility of generating a good pension for the future life is the responsibility of each person.

In this sense, there are some types of voluntary savings, such as: long-term contributions, where resources can remain in the account for a minimum of 5 years. The longer you stay in the Afore, the higher the returns it will generate.

The 2021 tax return may be filed until April 30 of this year, as announced by the Tax Administration Service (SAT).

The procedure can be carried out electronically and only a password is required. If a balance is obtained in favor of more than 150 thousand pesos or if the CLABE account is modified, then it must be sent with the electronic signature (e-signature).

According to the tax authorities, schedules were extended and some internet sites were set up in order to provide better service to taxpayers. For further questions or clarifications, interested parties may enter the following link of the SAT. Here.

The annual tax return will serve to record the income from your wages, your deductions, as well as perform the calculation of the annual tax, file in zeros, pay or request a balance in favor, that is, a refund or refund for the worker.

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