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Exceptional Unlocking of Employee Savings: What You Can Really Do

It is possible to unlock your employee savings without giving any reason until December 31, 2022. Under what conditions? What can be done with the withdrawn amounts?

Since August 18, you can exceptionally release part of the money withheld from your company savings plan without giving any reason. These amounts are usually inaccessible for at least five years, unless you know certain situations, such as a marriage, a contract, a divorce, a birth, the creation of a company, the purchase of your main residence…

The measure, intended to support families in case of inflation, was passed by parliament last summer as part of the law on emergency measures to protect purchasing power of August 16, 2022. Specifically, this release allows employees to withdraw up to 10,000 euros at once, until 31 December 2022on the amounts arising from profit-sharing or profit-sharing and which before 1uh January 2022 and the matching contribution paid by the employer.

What can we pay?

Beware, not everything is possible with the amounts released. “Because the measure is mainly designed as a measure of purchasing power, the amounts released can be used any purchase of goods and services“specifies Bercy, contacted by the JDN.

For the Ministry of Labor, which was also contacted, “the concept of goods or services must be understood in a broad sense. The legislator has chosen not to impose an exhaustive list and to leave the possibilities open.” Rue de Grenelle has given us a non-exhaustive list of what can be bought with the money released:

  • “New or second-hand movable property (cars, household appliances or other goods), regardless of the status of the seller (professional or private);
  • Unrented real estate (other than primary residence subject to specific early release);
  • All services (holiday accommodations, pedicure care, etc…)”.
  • It is also possible to pay tuition fees, according to the frequently asked questions of the Ministry of Labor dedicated to the device, which can be consulted here.

In this FAQ, the ministry indicates that the withdrawn amounts, on the other hand, are “not intended to be reinvested in other savings programs“. They can therefore not be used in the following cases, listed by the Ministry of Olivier Dussopt:

  • To reinvest in rental properties;
  • To reinvest in investment products or securities of any kind (bankbooks, life insurance, stocks, etc.);
  • To settle a loan;
  • To close a loan early;
  • To pay his taxes.

What is the deadline for spending?

Let’s start again: until December 31, it is possible to exceptionally release its participation rights and sums allocated as profit sharing in order to afford goods or services, but not to reinvest them. The question remains about the deadline for making these purchases.

Again, “the law does not set any limits, the Ministry of Labor informs the JDN. But the release with the aim of financing goods and services, the expenditure should not be too far from the release date. However, we admit that a purchase can take place in early 2023 for a release request in late 2022.”

“The most important thing is to spend them [les sommes issues du déblocage] within a reasonable time and keep the supporting documents for 3 years [délai de prescription du droit commun] in case of audit by the tax authorities, otherwise the employee risks a tax correction“, adds the Ministry of Economy and Finance.

Which formalities to respect?

In addition to the invoices that must be kept, “the employee must provide a sworn declaration that he will use the amount to finance the purchase of goods or the provision of a service,” Bercy reports.

An employee who cannot prove that he has actually used the withdrawn money to purchase goods or services may get into trouble during a tax audit. “The condition for the tax exemption of amounts arising from profit sharing and participation is the blocking for a period of five years on a company savings plan, the JDN reminds the Ministry of Labour. The exceptional measure of unblocking makes it possible to release the amounts before the deadline while retaining the tax exemption provided they finance the purchase of a good or service. they can no longer enjoy the tax exemption.”

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