Keren Hishtalmut Tax Savings Calculator IL 2027
Calculate Israeli Keren Hishtalmut 2027 tax savings — employer-matched savings, tax-free withdrawal after 6 years. 7.5% employer + 2.5% employee standard.
Keren Hishtalmut Mechanics
Joint savings fund. Employer typically 7.5% (tax-deductible to employer). Employee typically 2.5% (pre-tax to employee). 6-year lockup, then completely tax-free withdrawal forever.
2027 Ceiling
Contributions above ₪15,712/month no longer tax-advantaged. Above-ceiling contributions still allowed but lose the magic. Most cost-effective contribution = up to ceiling.
Withdrawal Rules
After 6 years from FIRST contribution: 100% tax-free withdrawal of all gains + principal. Before 6 years: 35% tax on gains + 0% on principal. Don't withdraw early.
Strategic Maximization
Most employees max out at ceiling. Some employers offer above-ceiling matches (still good investment but lose tax). Self-employed: open IndieFund version with same rules.
Source: Israeli Tax Authority Keren Hishtalmut guidelines, ITAS published 2026. Last updated: May 2026.
Frequently Asked Questions
What if I leave the job?
Keep account active OR transfer to new employer. 6-year clock continues. Don't cash out — lose tax-free benefit forever.
How invested?
Each provider (Migdal, Phoenix, Harel, etc.) offers tracks: conservative, moderate, aggressive. Higher-return = higher fee. Compare net of fees over 5-10 year periods.
Multiple Keren Hishtalmut accounts?
Yes. Up to ceiling combined across all accounts. Each tracks 6-year clock independently. Common to have 2-3 across job changes.