Kupat gemel lehashkaa (investment provident fund)
A kupat gemel lehashkaa is a long-term investment account with no employment condition, and you can take the money out at any time. A lump sum is taxed much like a brokerage account. A monthly pension from 60 is not taxed at all.
The rules in 2026
- Deposit ceiling: ₪83,641 a year (₪6,970 a month), across all your funds together.
- Access: withdraw all or part of it at any time, with no penalty.
- Lump sum: up to 25% of the real gain, which the fund withholds when you withdraw.
- From 60: if you take a monthly pension, both the gains and the pension are exempt from tax.
- Moving: switching to another fund or track is not a tax event.
What the tax costs
₪2,000 a month for 20 years at 6% a year after fees, with 2% inflation: ₪480,000 deposited grows to ₪924,082. A lump sum at 25% of the real gain pays ₪83,905 and leaves ₪840,177. Taken as a monthly pension from 60, the same balance pays no tax on those gains.
Compared with a study fund and a brokerage account
| Investment provident fund | Study fund | Brokerage account | |
|---|---|---|---|
| Deposits | Up to ₪83,641 a year | Benefit on a salary up to ₪15,712 a month | No limit |
| Withdrawal | Any time | After six years, or three for studies | Any time |
| Tax on a lump sum | Up to 25% of the real gain | None on time, within the ceiling | 25% of the real gain |
| Monthly pension from 60 | Tax-free | Not relevant | No such option |
| Changing investments | No tax | No tax | A sale is taxed |
A proposed change to the exemption
In mid-2026 a Finance Ministry committee on tax arbitrage recommended a combined ₪200,000 cap on this exemption across investment provident funds, savings policies and mutual funds. It is a recommendation, not a law: it would need legislation, and the Capital Market Authority opposes it. Press reports say it would probably not reach money already deposited. Check where it stands before you plan around the exemption.
See it in Moneta
In the Pension tab, choose Polisat Hisahon / Gemel Lehashkaa / Taxable portfolio to see withdrawals taxed at up to 25% of the real gain. From 60 that option applies a lower rate on a small gain, and sources differ on what a lump sum from a gemel lehashkaa pays then, so plan on the full 25%. The tab does not model the tax-free pension route: for an idea of it, compare the result with the Keren Hishtalmut option, which withdraws with no tax.
Frequently asked questions
What is the kupat gemel lehashkaa ceiling in 2026?
₪83,641 a year, across all your funds together.
Can I withdraw from a kupat gemel lehashkaa before 60?
Yes, at any time and with no penalty. You pay up to 25% of the real gain.
Is a kupat gemel lehashkaa tax-free from 60?
Only if you take a monthly pension. A lump sum still pays up to 25% of the real gain. A proposed ₪200,000 cap on the exemption has not become law.