If you are looking for an Employees Provident Fund special withdrawal, you have come to the right place. In this article, we will take you through everything you need to know about EPF special withdrawal.
As a retirement savings scheme that provides benefits to its members upon retirement, it allows members to withdraw their for other purposes. These purposes are medical bills, housing, and education.
The Malaysian government, in response to COVID-19 pandemic, has made it possible for members of the program to make a special withdrawal from their savings. This special withdrawal is usually knowns as 'EPF special withdrawal'. Keep reading to learn how the Employee Provident Fund special withdrawal works.
EPF Special Withdrawal Requirements
To be eligible for the Employee Provident Fund special withdrawal, members must meet the following criteria:
- Have his or her job lost or impacted negatively due to the COVID-19 pandemic
- Must be quarantined or infected with COVID-19
- Have been affected negatively by a natural disaster or other similar events
- Members who are required to care for a immediate family members who have been quarantined or infected with COVID-19
How to Apply for EPF Special Withdrawal
To apply for the EPF special program through the i-Sinar Online Application on the EPF website, follow the instructions below:
- Log in to your EPF i-Akuan and choose the i-Sinar Online Application form
- Enter your personal details such as bank account number, full name, cellphone number, and the amount you wish to withdraw
- Proceed to submit your application
After successfully submitting your application, waif for EPF to process your request. You may be credited within two to three working days depending on how fast your application has been processed.
EPF Special Withdrawal Tax Implications
It is important to know that withdrawing from your EPF special is subjected to tax. The amount withdrawn will be included in the member's taxable income for the year and will be taxed based on their income tax bracket. To Know more about the implications of tax on your EPF withdrawals, contact a tax professional.
Impact on Retirement Savings
Withdrawing from your EPF account also has negative impact on your retirement savings. This is because every withdrawal you make reduces the amount you have saved for your retirement.
It is therefore recommended that you should only withdraw when you have no other options available and if the situation is urgent. Members are encouraged to consider the impact of EPF withdrawals on their retirement savings and act accordingly.
Read also: EPF Withdrawal 10k
FAQs
Here are answers to some of the frequently asked questions about EPF special withdrawal program:
How does EPF special withdrawal affect my retirement savings?
The EPF program is designed to provide benefits to its members upon retirement. However, if you make frequent withdrawal, it is going to impact your retirement savings negatively. This is because your savings or money reduces each time you make a withdrawal.
Does EPF withdrawal has tax implications?
Yes, the special withdrawal is subjected to tax. The amount withdrawn will be included in the member's taxable income for the year and will be taxed based on their income tax bracket.
How do I apply for the Employee Provident Fund Special Withdrawal program?
Follow the instructions below to apply for your EPF withdrawal:
- Log in to your EPF i-Akuan and choose the i-Sinar Online Application form
- Enter your personal details such as bank account number, full name, cellphone number, and the amount you wish to withdraw
- Enter all the necessary information and proceed to submit your application
Conclusion
The EPF withdrawal program provides assistance to members who have been affected by the COVID-19 pandemic or other similar events. Members who meet the eligibility requirements can withdraw up to a maximum of rM60,000 from their Account 1 and 2.
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