Limited distribution.

Well since clients have been yelling at me to do it for a couple of weeks now, I just wasted an hour trying to put into words that at least I understand, the mess we have been given this year, and I have decided that nobody is going to read it and filed the lot. I have been looking at the attempts of some of my learned colleagues to do this and they simply don't make sense so I have decided to give the following general advice to the self employed (salaried people should speak to their insurance/pensions advisors and I will be happy to speak to them if they wish after that) and stand ready to enlarge upon it in your own situation by telephone:

ëòú ò÷á øéáåé ôðéåú îì÷åçåú áæáæúé ùòä òì ðñéåï ìúîöú áîéìéí ùìôçåú àðé îáéï, äáìâàï ùîöàðå àú òöîðå áå äùðä. äçìèúé ùàéù ìà é÷øà àåúå. òáøúé òì òáåãú çì÷ îòîéúé äîìåîãéí åôùåè àé àôùø ìäáéï îä øöå ìåîø, àæ äðä òöúé áàðâìéú ìòöîàéí , åàùîç ìäñáéø àåúä åàú ääîùê ùìä áòáøéú áèìôåï (ùëéøéí ééèéáå ìôðåú ìéåòõ áéèåç/ôðñéä åàí øåöéí àç"ë ìãáø àúé, àùîç ìðñåú ìòæåø):

1. If you are under 45 you really don't want to be putting money in a kupat gemel unless you don't mind not seeing it until you're past 60. And for sure however old you are, you aren't going to be doing that to your children by continuing these funds for them. But of course I have said all this before.
2. If you didn't read the last paragraph even though you are under 45, bear in mind that you get no allowance on the above type fund (also called "honi" or "capital" or "lump sum" insurance) unless you have first put at least nis 14000 this year in a pension fund or "kitzba" policy. As the law now stands, that will do for your entire allowance at least, but the tax office has announced its intention to change the law retroactively. If you wish to take a chance on that, call me and I'll explain what I think it may mean to you (remember - I hate giving advice on laws that have not been passed).
3. If you are over 45 it is totally unclear to me whether and to what extent it is intended to change the law applicable to you, but you don't have to have a pension plan because 20 years just isn't enough to build up a proper pension from scratch. You can certainly put away nis 10500 (over 50s = 13500) in a plan valid for "section 47" (including whatever you have already deposited in all types of tax effective insurance pensions and gemel) but it could reach 24000 depending on what happens on the night of the 31st in the Knesset, by which time it will be too late to do anything about it unless they change that rule too.
4. The limit for keren hishtalmut is 7% of profit up to 219000 (maximum deposit 15330) in a special fund for the self employed, but note that if you are also salaried you must first deduct that part of your salary on which k/h has already been paid. You cannot top up your employer's contributions.
5. Disability cover is allowed up to 2.5% without limit on profits but will reduce the sum on which you can invest tax effective savings.

There goes another 40 minutes.