Mad Hon · Keren hishtalmut

Open a keren hishtalmut

Open a keren hishtalmut. A step-by-step Mad Hon guide for your Keren hishtalmut score, written for olim.

1. Ask HR or your pension agent whether you are entitled.
A keren hishtalmut is not automatic and not universal. For an employee it exists only where the employment terms provide for it, so the first conversation is with HR or payroll: ask whether your terms include one, at what rate, and what the employer share is. If you are self-employed there is no employer side and you open one directly with a fund manager or through an agent, with your own annual deposit capped for tax purposes. Check the current ceiling before you set the amount, because it is updated periodically.
2. Choose the manager and the track yourself.
The account is yours even where the employer files the paperwork, so the fund manager and the investment track are your decision and the management fee is negotiable. Ask for the fee on the balance and the fee on deposits separately, and ask for three to five years of returns on the specific track rather than one strong year. The track can be changed later at no cost, so an early choice is not a life sentence.
3. Open the account with the fund manager.
It is usually a single online form. You will need your teudat zehut (Israeli ID) number, bank account details, and for an employee the employer's details too. Once it is open, send the fund details back to payroll so deductions can start on the next payslip.
4. Check the next payslip, and note the date.
Look for the keren hishtalmut line in the deductions and contributions block, and check the employer share appears alongside your own. If it does not, the details did not reach payroll. The date of that first deposit matters beyond the paperwork: the six-year clock that makes withdrawals tax-free starts running from it.

Open a keren hishtalmut. A step-by-step Mad Hon guide for your Keren hishtalmut score, written for olim.

1. Ask HR or your pension agent whether you are entitled.

A keren hishtalmut is not automatic and not universal. For an employee it exists only where the employment terms provide for it, so the first conversation is with HR or payroll: ask whether your terms include one, at what rate, and what the employer share is. If you are self-employed there is no employer side and you open one directly with a fund manager or through an agent, with your own annual deposit capped for tax purposes. Check the current ceiling before you set the amount, because it is updated periodically.

2. Choose the manager and the track yourself.

The account is yours even where the employer files the paperwork, so the fund manager and the investment track are your decision and the management fee is negotiable. Ask for the fee on the balance and the fee on deposits separately, and ask for three to five years of returns on the specific track rather than one strong year. The track can be changed later at no cost, so an early choice is not a life sentence.

3. Open the account with the fund manager.

It is usually a single online form. You will need your teudat zehut (Israeli ID) number, bank account details, and for an employee the employer's details too. Once it is open, send the fund details back to payroll so deductions can start on the next payslip.

4. Check the next payslip, and note the date.

Look for the keren hishtalmut line in the deductions and contributions block, and check the employer share appears alongside your own. If it does not, the details did not reach payroll. The date of that first deposit matters beyond the paperwork: the six-year clock that makes withdrawals tax-free starts running from it.