Inflation is eating away at the savings we keep in Poland: inheritances from our parents, gifts, ZUS (Poland’s Social Insurance Institution) or KRUS (the Polish farmers’ social insurance fund) pensions piling up in bank accounts. For those of you who do not need this money for now, I have a few suggestions. Even while living in the States, you can use an IKE (Polish individual retirement account) and invest in it regularly, for the long term, in a broad basket of stocks, for example exchange-traded funds (ETFs), following a “cost averaging” program. Let me explain how it works.
What Is an IKE
An IKE is an Individual Retirement Account in Poland, somewhat similar to the American Roth IRA. Contributions are not deductible from income, but gains in an IKE are exempt in Poland from the 19 percent capital gains tax (the so-called Belka tax), provided the withdrawal is made after age 60, or after age 55 once you have acquired pension rights. In addition, you must make contributions to the IKE in at least five calendar years of your choice, or pay in more than half of all contributions no later than five years before applying for the payout.
IKE accounts are offered by leading Polish banks, brokerage houses and insurance companies. An IKE is, in a sense, a wrapper for financial instruments: you can put into it anything from government bonds and bank deposits, through endowment insurance and investment funds, to instruments you pick yourself, such as stocks and ETFs.
IKE vs IKZE
A sister product is the IKZE – Individual Retirement Security Account, which can be compared to our traditional IRA. You can contribute 120 percent of the average monthly wage in the national economy forecast for a given year (180 percent for the self-employed), and these contributions reduce your income tax base for that year. Withdrawals after age 65 are subject to a flat 10% tax. Since Polish Americans living in the States usually pay no income tax in Poland, or pay very little (on Polish pensions), the IKZE is of no use to them. So we will focus only on the Individual Retirement Account (IKE).
Who Can Open an IKE
Currently, anyone who has turned 16 has the right to contribute to an IKE (minors can contribute only in a year in which they have income from an employment contract, and no more than that income). Adults do not even have to show any income. A person who is temporarily unemployed or self-employed in a liberal profession can also save in an IKE. What is important for us is that Polish citizens can open and save in an individual retirement account regardless of where they live, including outside Poland.
While in the States we may have several retirement accounts, in Poland you can have only one IKE. As the name suggests, the account must be individual, not joint with another person, such as a spouse or a child. There is only one exception to this rule. It applies when we decide to entrust our savings to an investment fund company. In that case, we can sign agreements with several investment funds managed by that company.
An IKE for a Retiree?
The act on individual retirement accounts does not prohibit retirees and disability pensioners from opening an IKE and saving in it. However, the IKE is clearly designed as an account for accumulating funds that are meant to supplement retirement income once you reach retirement age. That is why you should think about opening one much earlier.
A well-off retiree can use an IKE for estate planning, because the family will take over the assets left in it tax-free.
In the IKE agreement, you can name a beneficiary, that is, the person (or persons) to whom the funds will be paid after your death. The beneficiary of IKE funds can withdraw them or transfer them to his or her own IKE, or to a Polish employee pension plan. In each of these cases, the funds are exempt both from capital gains tax and from inheritance and gift tax. This is how a grandfather can leave a sizable little fortune to his loved ones in Poland.
How to Open an IKE
The first step is to open the IKE account. Not every financial institution lets you open an account remotely, so it is worth doing during a visit to Poland. Banks may require a visit to a branch, but brokerage houses should be able to handle delivering documents abroad and processing them.
Many banks and brokerage houses let their customers apply for an IKE online or through a hotline, and you then have access to the account by computer. It is worth asking about this at the institution where you already have an account.
There should also be no problem opening an IKE with Polish investment fund companies. The registration process and paperwork are sometimes entirely electronic. It is easier to complete the process for people who have an account at a Polish bank from which the first contribution will come. IKE accounts are held only in złoty.
Remember that every financial institution is bound by the FATCA agreement between Poland and the United States, so you will be asked whether you are a US taxpayer and asked for your Social Security number. I explain your obligations related to holding an account abroad in detail in my book “Jak chować pieniądze przed fiskusem” (“How to Hide Money from the Taxman”).
How Much Can You Contribute to an IKE
It is worth putting into an IKE only the money you will not need now or for the next five years, or even longer.
Since January 1, 2009, the maximum annual IKE contribution limit has been three times the projected average monthly wage in the national economy for a given year. The government announces this amount every year. For 2026, the IKE contribution limit is PLN 28,260. If your spouse also opens his or her own account, the two of you can shelter twice as much from taxes.
If you contribute more than the permitted limit to your IKE, the financial institution that runs your account is required to refund the excess. There is no penalty for it.
The act on individual retirement accounts did not set a minimum IKE contribution, only a maximum. Nevertheless, financial institutions offering IKEs may require savers to make certain minimum contributions.
What to Invest In?
An IKE is only a wrapper for investments, so it pays to think carefully about what to put into it.
If you hold only bank products in your IKE, you will not earn much, the benefits of the tax shelter will be small, and inflation will keep eating away at your savings.
With a long time horizon, it is worth investing in stocks on American and Western stock exchanges and in other assets that hold their value during inflation. ETFs will help with this – ready-made products that are baskets of stocks, commodities or other securities. ETFs usually track a selected stock index, a sector of the economy or an asset class. They have low operating costs, are also available in Poland, and I described them in the article “Jedyna strategia inwestycyjna, jakiej potrzebujesz” (“The Only Investment Strategy You Need”), which can be found online at PoradnikSukces.com.
Start with one ETF that tracks a broad index of a major stock exchange or exchanges (e.g., the S&P 500). Once you spread your wings, you can try a suitable allocation of funds across different asset classes: not only US stocks but also foreign and sector stocks, plus commodities and gold. There are numerous ETFs in each of these categories. Talk to an investment advisor.
A Cost Averaging Program with ETFs
It is worth setting up an automatic, regular investment program called Dollar Cost Averaging (DCA). It works like this: you regularly and automatically transfer a set amount into an investment account, preferably a retirement account, where you buy exchange-traded ETFs. When the market falls, you buy shares on sale, that is, more cheaply. If the market rises, you buy less for the same amount, but the rest of the pool will swell. This way you have reason to be satisfied in any circumstances. Thanks to the simple, stress-free Dollar Cost Averaging program, you average out the cost of investing and will make money even when the market does not rise but only fluctuates. And when it does rise, your portfolio will grow like a snowball. Give yourself a few decades and you will become a millionaire, which is a good achievement even in złoty.
To sum up: You invest in ETFs in an IKE following the cost averaging rule. Now we know what it is all about. Unfortunately, most Poles back home do not know this – only a small portion of working people save in an IKE.
Not planning to go to Poland, not keeping money there? No matter. You can put the Dollar Cost Averaging strategy into practice in the States, using one of the American retirement plans, or even an ordinary brokerage account.
Updated October 2026.
