IRA Withdrawals

Title: Understanding IRA Withdrawals in Singapore: A Comprehensive Guide


Individual Retirement Accounts (IRAs) play a vital role in helping individuals plan for a financially secure retirement. In Singapore, the Central Provident Fund (CPF) serves as the primary retirement savings scheme. However, CPF members may also opt for additional voluntary contributions through the Supplementary Retirement Scheme (SRS). In this article, we will explore the intricacies of IRA withdrawals in Singapore and provide a comprehensive guide for individuals seeking to make informed decisions about their retirement funds.

  1. The Supplementary Retirement Scheme (SRS):

The Supplementary Retirement Scheme is a voluntary savings scheme introduced by the Singapore government to encourage individuals to save for retirement beyond their CPF contributions. Under the SRS, Singapore citizens, permanent residents, and foreigners working or residing in Singapore can contribute to their SRS account, enjoy tax benefits, and have the flexibility to withdraw funds at retirement age.

  1. Age and Eligibility:

The minimum age to open an SRS account is 18 years old, and the account remains active until the account holder reaches the withdrawal age of 62. Singapore citizens, permanent residents, and foreigners with valid employment passes are eligible to open an SRS account.

  1. Contribution Limits:

The maximum SRS contribution limit is determined annually by the government and is subject to change. As of 2023, the contribution limit is SGD 15,300 for Singapore citizens and permanent residents and SGD 35,700 for foreigners. Contributions made to the SRS are eligible for tax relief, reducing an individual’s taxable income.

  1. Investment Options:

SRS funds can be invested in various financial instruments, including stocks, bonds, unit trusts, and fixed deposits. The investment choices depend on the financial institution holding the SRS account. It is essential to consider one’s risk tolerance, investment objectives, and seek professional advice before making investment decisions.

  1. Withdrawals:

Upon reaching the withdrawal age of 62, SRS account holders can begin making withdrawals. It is crucial to note that withdrawals from the SRS are subject to tax. Only 50% of the withdrawal amount is taxable at the prevailing income tax rates. The remaining 50% is tax-free. It is advisable to strategize withdrawals to manage tax implications effectively.

  1. Pre-mature Withdrawals:

In certain exceptional circumstances, pre-mature withdrawals may be allowed, subject to penalties. Examples of qualifying events include death, permanent departure from Singapore, medical grounds, bankruptcy, and financial hardship. It is essential to consult with the SRS operator or financial institution for the specific criteria and penalties associated with pre-mature withdrawals.

  1. Conversion to Annuities:

SRS account holders have the option to convert their SRS savings into annuities upon reaching the withdrawal age. An annuity provides a regular stream of income during retirement and can help individuals ensure a steady cash flow to meet their expenses.


Planning for retirement requires careful consideration of various factors, and Individual Retirement Accounts (IRAs) provide individuals with additional avenues to accumulate savings for their golden years. In Singapore, the Supplementary Retirement Scheme (SRS) offers individuals the flexibility to contribute, invest, and withdraw funds, while enjoying tax benefits. Understanding the rules, contribution limits, investment options, and withdrawal mechanisms of the SRS is crucial for individuals seeking to optimize their retirement savings. By staying informed and seeking professional advice, Singaporeans can make the most of their IRA withdrawals to secure a comfortable and financially stable retirement.