Pension IRP Tax Credit Allocation Calculator

Estimate how retirement contributions, tax credit assumptions, fees, and return affect after-tax value.

Pension and IRP tax-credit allocation

Find the Korean tax-credit optimal split between pension savings and IRP, including ISA maturity-transfer bonus deduction.

Optimal refund

₩1,485,000

16.5%

Optimal pension savings

₩6,000,000

Optimal IRP

₩3,000,000

Loss if all to pension

₩495,000

Credit-limit usage

100.0%

Shortfall ₩0

ISA bonus refund

₩0

Eligible ₩0

Uses Korean 2026 limits: KRW 6 million pension-savings credit cap, KRW 9 million combined pension+IRP cap, KRW 18 million contribution cap, 16.5%/13.2% credit rates, and ISA transfer 10% up to KRW 3 million. This English finance calculator calls the Korean feature lib for its numeric result. KRW inputs and outputs replace the old generic USD projection stub for this batch.

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Pension savings and IRP tax-credit allocation calculator

This English guide translates the Korean allocation optimizer for pension savings and IRP. It calls calculateAllocation and keeps the 2026 credit limits, rates, annual payment limit, and ISA-transfer extra credit.

2026 limits and rates

The Korean rule set uses a KRW 6 million pension-savings-only credit limit, KRW 9 million combined pension plus IRP credit limit, and KRW 18 million annual pension-account contribution limit. Amounts above the credit limit can still be tax-deferred but do not increase the credit.

The credit rate is 16.5% for salary up to KRW 55 million or comprehensive income up to KRW 45 million, and 13.2% above those thresholds. These rates include local income tax.

Why allocation matters

A common Korean mistake is putting KRW 9 million entirely into pension savings. Because the pension-savings-only credit limit is KRW 6 million, the remaining KRW 3 million does not receive credit unless allocated to IRP.

At 16.5%, KRW 6 million pension savings plus KRW 3 million IRP can produce KRW 1,485,000 credit, while KRW 9 million pension savings alone produces KRW 990,000. The missed credit is KRW 495,000.

ISA maturity transfer

The Korean content also keeps the ISA maturity transfer rule: 10% of the transferred amount can receive additional credit, up to KRW 3 million, separate from the ordinary KRW 9 million combined limit.

Use this calculator before year-end funding so the pension savings and IRP amounts fit the limits. It does not replace account suitability review, but it prevents a simple allocation mistake from reducing the tax refund.