TBSZ Account Renewal + Opening New One in Same Year

First Time Investing 🎓
1

Dear BrokerChooser,

In January 2023 I opened my first TBSZ account , to which I make monthly contributions and invest the money right away. Every year in January I open a new TBSZ account and make regular monthly deposits and investments. I am only thinking long term, so I will not sell, and I want to keep my money in a TBSZ account for a long time.

My question is what happens when the 5 years expire in 2028? If I want to continue to keep opening TBSZ accounts every year from 2029 onwards and also keep my current investments in a TBSZ like now, what should I do? What does it mean to continue without a collective year (gyƱjtĆ‘Ă©v nĂ©lkĂŒli folytatĂĄs) in this case? In this case, would I not be able to make new contributions from 2029? How can I ensure that from 2029 all my existing investments remain in my TBSZ account and that I can make new payments and investments?

Thanks,
Akos

2

Hi Akos,

It’s great to hear about your consistent long-term investment strategy using TBSZ accounts. Let me clarify what happens when the five-year period of your first TBSZ account expires and how you can maintain your investments while continuing contributions.

  1. When the 5-Year Period Ends in 2028:
  • After five years, your first TBSZ account will “mature,” meaning the investments within it will be tax-free if you withdraw them.
  • If you don’t withdraw, the account transitions into a regular securities account. However, you can avoid this by opting for a continuation without a collective year (gyƱjtĆ‘Ă©v nĂ©lkĂŒli folytatĂĄs).
  1. What is “Continuation Without a Collective Year”?
  • This means you continue to keep your current investments in the TBSZ framework for the long term, but you won’t have a new gyƱjtĆ‘Ă©v (collection year).
  • You won’t be able to make new deposits into this specific TBSZ account. It essentially becomes a “holding” account for your existing tax-free investments.
  1. Opening New TBSZ Accounts Post-2028:
  • To keep making regular contributions and investments, you will need to open a new TBSZ account each year (as you’re already doing).
  • From 2029 onward, your matured TBSZ accounts will remain tax-advantaged for their investments, while your new accounts will begin their own five-year tax-benefit countdown.
  1. Ensuring a Smooth Transition:
  • Simply continue your current practice of opening a new TBSZ account each year for contributions and new investments.
  • When a TBSZ matures, elect to continue it without a collective year. This way, your existing investments remain tax-protected, and you avoid unnecessary taxation.

By maintaining this structure, you’ll have a mix of matured TBSZ accounts holding tax-free investments and active TBSZ accounts receiving new contributions—all under the umbrella of TBSZ benefits.

If anything is unclear or you need further guidance, feel free to ask.

Best regards,
Andris