A Supplementary Retirement Scheme (SRS) account is a great way to save for your retirement while also enjoying tax benefits. It is a voluntary savings scheme that allows individuals to set aside money for their retirement, on top of their Central Provident Fund (CPF) contributions.
If you have been contributing to your SRS account for some time, you may be wondering how to withdraw funds from it when the time comes. In this article, we will guide you through the process of withdrawing funds from an SRS account.
Step 1: Check your SRS account balance and withdrawal eligibility
Before you start the withdrawal process, you need to ensure that you are eligible to make a withdrawal. You can check your SRS account balance and withdrawal eligibility by logging in to your SRS account via the website or contacting your SRS operator.
Step 2: Decide on the amount and timing of your withdrawal
Once you have confirmed your eligibility, you need to decide on the amount and timing of your withdrawal. You can withdraw up to the full amount in your SRS account, but keep in mind that any withdrawal amount will be subject to income tax in the year of withdrawal.
If you plan to withdraw your funds before the age of 62, you will also be subject to a 5% penalty on the withdrawn amount. However, if you make the withdrawal after the age of 62, the penalty will be waived.
Step 3: Submit a withdrawal request
To submit a withdrawal request, you will need to complete and submit a withdrawal form to your SRS operator. The withdrawal form can be obtained from the SRS operator’s website or by contacting them directly.
You will need to provide information such as your SRS account number, the amount you wish to withdraw, and your personal details. The withdrawal process usually takes around 10 working days, so make sure you plan your withdrawal accordingly.
Step 4: Receive your funds
Once your withdrawal request has been approved, your funds will be transferred to your designated bank account. It is important to ensure that the bank account details provided are accurate and up-to-date to avoid any delays in receiving your funds.
In conclusion, withdrawing funds from an SRS account is a straightforward process, but it is important to ensure that you meet the eligibility criteria and understand the tax implications before making a withdrawal. With careful planning and consideration, you can make the most of your SRS account and enjoy a comfortable retirement.